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

Question

In Myanmar, six 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 $1.75 per day, can produce 48 units. In Billings, Montana, two laborers, each making $60.00 per day, can make 102 units.

Shipping costs from Myanmar to Denver, Colorado, the final destination, is $2.00 per unit. Shipping costs from China to Denver is $1.25 per unit, while the shipping cost from Billings to Denver is $.30 per unit.

Based on total cost (labor and transportation) per unit, the most economical location to produce the item is ___, with a total cost (labor and transportation) per unit of $___.

Problem 8.2 Exercise Scores O of 2 pts Assignment Score: 0% (0 of 10 pts) 0 of 5 In Myanmar, six 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 $1.75 per day, can produce 48 umits.In Bilings, Montana, three laborers, each making $60.00 per day, can make 102 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $2.00 per unit. Shipping cost from China to Denver is $1.25 per unit, while the shipping cost from Bilings, Montana to Denver is $0.30 per unit. with a total cost (labor and transportation) per umi of (Enter your Based on total costs (labor and transportation) per unit, the most economical location to produce the item is response rounded to two decimal places.) Save Clear All Check Answer All parts showing Search the web and Windows

Explanation / Answer

Labor cost per unit in Mayanmar = ($2.50 * 6) / 38 = $0.395

Labor cost per unit in China = ($1.75 * 9) / 48 = $0.328

Labor cost per unit in Billings = ($60 * 2) / 102 = $1.176

Shipping costs from Myanmar to Denver = $2.00 per unit

Shipping costs from China to Denver = $1.25 per unit

shipping cost from Billings to Denver = $.30 per unit

Total Cost per unit From Mayanmar = 0.395 + 2 = $2.395

Total Cost per unit From China = 0.328 + 1.25 = $1.578

Total Cost per unit From Billings = 1.176 + 0.30 = $1.476

Based on total cost (labor and transportation) per unit, the most economical location to produce the item is Billings , with a total cost (labor and transportation) per unit of $1.476.

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