In Myanmar, five laborers, each making the equivalent of $2.50 per day, can prod

Question

In Myanmar, five 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, Montana, three laborers, each making $63.00 per day, can make 100 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $2.00 per unit. Shipping cost from China to Denver is $1.25 per unit, while the shipping cost from Billings, Montana to Denver is $0.30 per unit. Based on total costs (labor and transportation) per unit, the most economical location to produce the item is with a total cost (labor and transportation) per unit of (Enter your response rounded to two decimal places.)

Explanation / Answer

Dear Student Thank you for using Chegg !! City No of Laboor Earning of 1 labour/ day ($) Unit / day Shipping Cost to denver/unit ($) Total Cost (Labor + transportation) / Unit Mynamar 5 2.5 38 2 2.328947368 China 11 1.75 48 1.25 1.651041667 Bilings, Montana 3 63 100 0.3 2.19 * Total Cost is calculated by multiplying No of labors with Earning of 1 labour/day and then dividing the result with units. The result is added with shipping cost / unit to get the solution Hence most economical location to produce item is China with a total cost of 1.65$ per unit

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