Canada’s largest chemical company produces and markets butyl rubber in two divisions, each treated as a profit center. The new plant in the North American Division operates below capacity, leading to a substantial volume variance and an operating loss. The European Division at capacity and is profitable. The activities of the European division affect the utilization of the North American Division. Including Head of Financial Statements and interviews with the Vice-President of each … Read more »

Canada’s largest chemical company produces and markets butyl rubber in two divisions, each treated as a profit center. The new plant in the North American Division operates below capacity, leading to a substantial volume variance and an operating loss. The European Division at capacity and is profitable. The activities of the European division affect the utilization of the North American Division. Including Head of Financial Statements and interviews with the Vice-President of each division.
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from
Robert L. Simons
Source: Harvard Business School
13 pages.
Release date: 05 February, 1987. Prod #: 187098-PDF-ENG
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