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21 September, 07:36

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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  1. 21 September, 08:01
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    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.
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