ArchoChem Ltd manufactures two chemicals, West 1 and West 2. Contribution margin data follow: ArchoChem production process
Question:
ArchoChem Ltd manufactures two chemicals, West 1 and West 2. Contribution margin data follow:
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ArchoChem production process uses highly skilled labour, which is in short supply. The same employees work on both products and earn the same wage rate of $21 per hour.
Required
Which of ArchoChem's products is the more profitable? Explain.
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