Question

In Myanmar, seven laborers, each making the equivalent of $2.50 per day, can produce 38 units per day. In China, nine laborers, each making the equivalent of $2.00 per day, can produce 45 units. In Billings, Montana, four laborers, each making $57.00 per day, can make 102 units.
Based on labor cost per unit only, the most economical location to produce the item is ____, with a labor cost per unit of $__. (Enter your response rounded to two decimal places.)

Answer 1

Answer:

The labor cost per unit is lowest for China and is $0.40 per unit

Explanation:

Country    Labor Wage per Day   Wages per    Production      Labor cost

                 count       per labor         Day               units per day     per Unit

                    L            w                  W=L×w              P                    l=W÷P

Myanmar      7          $2.50               17.50               38                 $0.46

China            9          $2.00               18.00               45                 $0.40

Billings/         4          $57.00            228.00         102                   $2.24

Montana

The labor cost per unit is lowest for China and is $0.40 per unit