The impact on profitability of the chemical company in case of the leakage of chemicals
In case the company conceals the information about the leakage of chemicals, it can face the challenge of social corporate responsibility, which can be fraught with serious legal consequences. The company will have to confront moral and ethical issues, which can spoil its reputation. Violation of environmental laws is also a serious threat to the successful existence of the company. However, in case the company admits the failure, the consequences can be less serious in regards to the rules and, therefore, the firm will experience much less costs.
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The factors involved in conducting a break-even analysis for the chemical company
A manager of a chemical company should take all possible steps to decrease the costs and increase the revenues. In this case, it is necessary to reduce the costs by reconsidering the rent price or controlling the incoming calls. Variable costs can also be reduced by changing suppliers or inviting a new segment of customers. Finally, the selling price of the product can also be increased.