In Myanmar, six laborers, each making the equivalent of $2.50 per day, can produ
ID: 352095 • Letter: I
Question
In Myanmar, six laborers, each making the equivalent of $2.50 per day, can produce 38 units per day. In China, ten laborers, each making the equivalent of $2.25 per day, can produce 45 units. In Billings, Montana, three laborers, each making $57.00 per day, can make 102 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.75 per unit. Shipping cost from China to Denver is $1.25 per unit, while the shipping cost from Billings, Montana to Denver is $0.25 per unit Based on total costs (labor and transportation) per unit, the most economical location to produce the item is per unit of $(Enter your response rounded to two decimal places) Vwith a total cost (labor and transportation)Explanation / Answer
Total cost at
Myanmar
38 units cost $2.50 * 6 = $15
1 unit cost = 15/38 = $0.39
Shipping cost/unit = $1.75
Total cost = 1.75 + 0.39 = $2.144
China
45 units cost $2.25 * 10 = $22.5
1 unit cost = 22.5/45 = $0.5
Shipping cost/unit = $1.25
Total cost = 1.25 + 0.5 = $1.75
Montana
102 units cost $57 * 3 = 171
1 unit cost = 171/102 = $1.67
Shipping cost/unit = $0.25
Total cost = 1.67 + 0.25 = $1.92
Based on total cost, the most economical location is China. With a total cost per unit of $1.75
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