If a company invests $3.5 million per million pairs of capacity for a plant faci

Question

If a company invests $3.5 million per million pairs of capacity for a plant facilities upgrade that will boost labor productivity by 25%, it is accurate to say that the resulting decline in labor costs per pair produced will be $0.50 for a plant in the Asia-Pacific that currently has labor productivity of 2,800 pairs per worker and total employee compensation of $3,500 annually. will be the same for all of the company's plants because the gains in labor productivity are 25% irrespective of what other differences in labor-related conditions may exist. will be $0.35 for a plant in Latin America that currently has labor productivity of 3,000 pairs per worker and total employee compensation of $3,000 annually. will be $0.25 for a plant in the Asia-Pacific that currently has labor productivity of 3,200 pairs per worker and total employee compensation of $4,000 annually. will always be greatest in whichever company plant currently has the lowest total employee compensation per year.

Explanation / Answer

option 2 is correct. the remaining alternaives says about the cost at different places

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