In Myanmar , six laborers, each making the equivalent of $ 2.50 per day, can produce 38 units per day. In China , eleven laborers, each making the equivalent of $ 1.75 per day, can produce 48 units. In Billings comma Montana , three 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 Billings, Montana Myanmar China Billings, Montana , with a labor cost per unit of $ nothing. (Enter your response rounded to two decimal places.)

Question

Business

Rowan Osborne

13 January, 15:54

In Myanmar , six laborers, each making the equivalent of $ 2.50 per day, can produce 38 units per day. In China , eleven laborers, each making the equivalent of $ 1.75 per day, can produce 48 units. In Billings comma Montana , three 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 Billings, Montana Myanmar China Billings, Montana , with a labor cost per unit of $ nothing. (Enter your response rounded to two decimal places.)

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Answers (1)

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Leanna Nelson · Answer 1

Myanmar = $0.39

Explanation:

In this question, we find the labor cost per unit for each:

Labor cost per unit = (Number of labors * Wage rate per day) : (number of units produced)

For Myanmar:

Labor cost per unit would be:

= (6 labors * $2.5) : (38 units)

= $15 : 38 units

= $0.39

For China:

Labor cost per unit would be:

= (11 labors * $1.75) : (48 units)

= $19.25 : 48 units

= $0.40

For Montana:

Labor cost per unit would be:

= (3 labors * $60) : (105 units)

= $180 : 105 units

= $1.71

So, the most economical would be Myanmar as it has the least labor cost per unit among these two.