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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andromache andromache · Answer 1 · 2019-10-15T07:00:39+02:00

Answer:

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.