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LO 20.9 ArchoChem Ltd manufactures two chemicals, West1 and West2. Contribution margin data follow: West1 West2 $13.00 $31.00 Unit sales price Less Direct material 7.00

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LO 20.9 ArchoChem Ltd manufactures two chemicals, West1 and West2. Contribution margin data follow: West1 West2 $13.00 $31.00 Unit sales price Less Direct material 7.00 5.00 1.00 6.00 1.25 7.50 Direct labour Variable overhead Variable selling and administrative costs Unit contribution margin 0.75 0.50 $3.00 $12.00 ArchoChem's 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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