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

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 51 units. In Billings comma Montana, three laborers, each making $ 60.00 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 $ 1.00 per unit, while the shipping cost from Billings comma 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

Total cost (labor and transportation) per unit for Myanmar to Denver = 6*2.5/38 + 1.75 = $ 2.14

Total cost (labor and transportation) per unit for China to Denver = 10*2.25/51 + 1.00 = $ 1.44

Total cost (labor and transportation) per unit for Billings comma Montana to Denver = 3*60/102 + 0.30 = $ 2.06

Based on total costs (labor and transportation) per unit, the most economical location to produce the item is _China_, with a total cost (labor and transportation) per unit of $_1.44_. (Enter your response rounded to two decimal places.)

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