In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produce 40 units...

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In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produce 40 units...

In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produce 40 units per day. In China, eleven laborers, each making the equivalent of $2.25 per day, can produce 45 units. In Billings, Montana, two laborers, each making $60.00 per day, can make 105 units.

Based on labor cost per unit only, the most economical location to produce the item is ______ (options are: billings/Montana, China, Myanmar), with a labor cost per unit of $______. (Enter your response rounded to two decimal places.)

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Answer 1

Answer #1

Labor cost per unit in Myanmar = Number of laborers * Wage per day / Output per day

= 6*3.5/40

= $ 0.53 per unit

Labor cost per unit in China = 11*2.25/45

= $ 0.55 per unit

Labor cost per init in Billings/Montana = 2*60/105

= $ 1.14 per unit

Based on labor cost per unit only, the most economical location to produce the item is ___Myanmar___

(options are: billings/Montana, China, Myanmar), with a labor cost per unit of $__0.53____. (Enter your response rounded to two decimal places.)

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Answer 2

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