Victoria Chemicals Case Study Essay

Polysar Limited is Canada’s largest chemical company. It is structured into 3 groups, namely, basic petrochemicals, rubber, and diversified products. Rubber Group is the largest of the three operating units of Polysar Limited. The primary users of its products, such as butyl and halobutyl, are manufacturers of automobile tires; other users are from various industries. In 1986, Rubber group contributed 0.8 billion which is 46 percent of the company annual sale. The operation of the group is divided into four divisions, NASA (North America and South America) and EROW (Europe and rest of the world), Research department and Global Marketing department. NASA and EROW operate as profit centers each produce butyl and halobutyl

Test Market expenses – This is a sunk cost and thus should not be included

Overhead costs need to be accounted for this way we can understand just how much cost goes into producing each unit. There are other cost factors that contribute to the product aside from labor and material. Since the projected and the actual sales volumes do not align Kelly should be concerned with the other

are costs that have already been incurred and cannot be changed by any decision made

Overhead costs are not in proportion to the production output because of the method they are using. This leads to inaccurate pricing and costing decisions. An Activity Based Costing System would help find the real relationship between the products produced and overhead.

Production line workers are the employees who are usually doing their work by hand or in this day and age, running the machine or equipment to make the products. In this particular case, Canada Chemicals Corporation utilizes their production employees by producing industrial chemicals. These production worker’s jobs are a lot more complete then other production level workers employees as they usually have plenty of skill, knowledge and experience, and have high educational background. In order to reverse recent challenges with production and sales, I have composed a compensation package for these employees that will motivate them intrinsically, and focus on rewards that are extrinsic.

* Accumulation of costs exceeds the amount expected for acquisition or construction of the asset

Provide the following discussion based on the conclusion of your test: If you conclude that there are less than sixteen (16) ounces in a bottle of soda, speculate on three (3) possible causes. Next, suggest the strategies to avoid the deficit in the future.

There was insufficient evidence to demonstrate that Barnes did understand the label to constitute a representation in the form suggested. It was found that Glendale was negligent and in all circumstances, it was considered there was a duty on Glendale to include in the packaging a warning as to the consequences of using corrosive product with hot water in a confined space such as a drain. There was no specific defect with the caustic soda but the issue is whether it was defective within the meaning of Section 75AC. It was found by the court the label to be defective within the meaning of section 75AC.

For Treasury division, Due Bills was huge profit generating product, managers/traders in that division were keen on increasing Due Bill sales volume and there by profits. Whereas for Metro division it was yet another product under many business/individual deposits they are dealing with. Considering costs associated and amount of work involved with Due Bill, it was not critical to meet their goals.

The treatment of conflicts of interest and other ethical dilemmas that may arise in investment decisions.

This cost has not yet been incurred. Because it is necessary to the proposed addition it is an out-of-pocket cost

This report seeks to explain the key differences between the NASA (North American South American) and EROW (Europe and rest of world) sales performance over the past nine months. There are several reasons causing the sales performance figures currently stemming from NASA to be incomparable with the EROW numbers, including the current practice of transferring large quantities of regular butyl rubber from the Sarnia to the Antwerp production facilities. As Polysar operates globally, it

I found the most interesting quote to be “waste handlers concluded that compliance doesn’t pay”. The unpleasant fact is that companies would rather risk being caught and pay a fine than to spend more money on safely disposing waste. Environmental officials need to make punishments stricter if they want companies to start following rules that protect human and environmental health.

Answer: The $262,500 test marketing cost is a sunk cost. It is a cost that would have been incurred whether the project was approved or not. It is not a cash flow that will only occur if the project is accepted. Therefore, since it is not an incremental cash flow that would only occur if the project is accepted, we do not include it as part of our analysis.