Question

How can I Calculate the gross margin in $ per kg styrene produced, using prices of $1.3/kg ethylbenzene, $1.5/kg styrene, and $1/kg hydrogen-rich stream?

1000 kg/h styrene

2921 kg/h ethylbenzene

0.0198 kg/h hydrogen

Answer 1

So, We need to calculate the gross margin of Styrene:

• Firstly, the formula for the gross margin is:

The total revenue meant to be the cost per hour

Cost of products is the cost per kg that given

so, here for styrene the total revenue is calculated,

given quantity for an hour is : 1000kg

so the Total Revenue : 1000 x ($1.5) = $1500/hr

Cost of Products =  $1.5

So, the Gross Margin of the styrene is 0.999.