In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produ

ID: 420083 • Letter: I

Question

In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produce 40 units per day. In China, eleven laborers, each making the equivalent of $2.00 per day, can produce 51 units. In Billings, Montana, three laborers, each making $60.00 per day, can make 102 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1.00 per unit, while the shipping cost from Billings, Montana to Denver is S0.20 per unit Based on total costs (labor and transportation) per unit, the most economical location to produce the item is transportation) per unit of (Enter your response rounded to two decimal places.) Vwith a total cost (labor and China Billings, Montana Myanmar

Explanation / Answer

The answer is China with cost per unit at $1.43

In Myanmar

6 labourers are making $3.50 per day

So, total labour cost: - 6*$3.50= $21.00 per day

They produce a total of 40 units per day @ labour cost of $21.00 per day.

Shipping cost of one unit from Myanmar to Denver is $1.50 per unit

So, Total shipping cost: - 40*$1.50 = $60.00

Total cost incurred in Myanmar = $21.00 +$60.00 = $81.00 for 40 units

So, total cost incurred on one unit: - $81.00/40 = $2.03

In China

11 labourers are making $2.00 per day

So, total labour cost: - 11*$2.00= $22.00 per day

They produce a total of 51 units per day @ labour cost of $22.00 per day.

Shipping cost of one unit from China to Denver is $1.00 per unit

So, Total shipping cost: - 51*$1.00 = $51.00

Total cost incurred in China = $22.00 +$51.00 = $73.00 for 51 units

So, total cost incurred on one unit: - $73.00/51 = $1.43

In Montana

3 labourers are working for $60.00 per day

So, total labour cost: - 3*$60.00= $180.00 per day

They produce a total of 102 units per day @ cost of $180.00 per day.

Shipping cost of one unit from Montana to Denver is $0.20 per unit

So, Total shipping cost: - 102*$0.20 = $20.40

Total cost incurred in Montana = $180.00 +$20.40 = $200.40 for 102 units

So, total cost incurred on one unit: - $200.40/102 = $1.96

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In Myanmar, six laborers, each making the equivalent of $3.50 per day, can produ

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