ECONOMIC POTENTIAL o A major fraction of the total cost ofproducing most large-scale commodity chemicals is the cost of the raw materials(25-50%) ◆ A useful measure of加 he profitability of a proposed process design the economic potential EP. EP= Sales revenue -cost of raw materials If EP <0 for all possible design alternatives, then the project, baring improvements in the technology, should be abandoned If ep< twice the cost of raw materials then the profitability is suspect (rule of thumb) 1l/19/99 Input-Output Structure11/19/99 Input-Output Structure 13 ECONOMIC POTENTIAL u A major fraction of the total cost of producing most large-scale commodity chemicals is the cost of the raw materials (25-50%) u A useful measure of the profitability of a proposed process design the economic potential EP. EP = Sales revenue - cost of raw materials If EP < 0 for all possible design alternatives, then the project, baring improvements in the technology, should be abandoned. If EP < twice the cost of raw materials, then the profitability is suspect (rule of thumb)