You have been hired by an insurance company to investigate claims filed by Reage

Question

You have been hired by an insurance company to investigate claims filed by Reagents Unlimited, Inc. (a chemical company that claims there was a fire in their company

offices and storehouse recently). The insurance company has received unconfirmed reports that the company was incurring heavy losses. It is your responsibility to find if this is true. Urea is the main product on the market that the chemical company is producing. Urea is

used in fertilizers as a convenient source of nitrogen. In fact it is

widely regarded as the most used fertilizer worldwide. Urea is

also an important raw material for the ch

emical industry(plastics, adhesives, etc.). So it is very much in demand and its production is very lucrative.

This company mixes aqueous ammonia (NH3) and aqueous carbon dioxide (CO2) to create the aqueous urea (CH4N2O) and water

Considering the recent file at the company offices and the manufacturing plant, all records have been lost. This makes your job harder. However, the good news is that because their actual plant was not harmed in the fire, their final batch of product is safe and available. T

his final batch of urea weighed 168.4 kg. The company claims they usually have a percentage yield of 70.0 %. They have also determied 38.26 kg of carbon dioxide is left over after the reaction was completed.Determine if the company is making a profit or taking a loss given the following information.

Chemical Price ($/metric ton) (1 metric ton= 1000 kg)

Ammonia    $325

Carbon dioxide   $50

Urea    $425

Show all your calculations

and write out your outcome to this problem

Explanation / Answer

The reaction is NH3+ CO2--à NH2CONH2

Weight of urea = 168.4 kg = 0.1684 tons toMolecular weight of Urea= 60

Moles of urea produced = 168.4/60= 2.81 kg mol

Yiield of Urea = 70%

Moles of urea/moles of ammonia consumed= 0.7

Moles of ammonia consumed= 2.81 kg/mol/0.7= 4.01 kg mol =4.01*17* kg =68.17 kgs=0.06817 tons

CO2 actually required= 2.81 kg moles= 2.81*44kgs= 123.64 kg =0.12364 tons

CO2 utilized= 123.64-38.26=85.38 kgs=85.38/1000=0.08538 tons

Profit ( in dollars) = products cost – raw material cost

        =0.1684*425$- ( 325*0.06817+ 0.08538*50)$ =45.15$

The company is making profit accounting only based on raw material and product cost. Operating cost if accounted for decides whether there is profit or not.

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