Question

In Myanmar​, six ​laborers, each making the equivalent of $ 2.50 per​ day, can produce 40 units per day. In China​, ten ​laborers, each making the equivalent of $ 2.25 per​ day, can produce 48 units. In Billings comma Montana​, two ​laborers, each making $ 60.00 per​ day, can make 102 units. Based on labor cost per unit​ only, the most economical location to produce the item is China ​, with a labor cost per unit of ​$ . 05. ​(Enter your response rounded to two decimal​ places.)

Answer 1

$0.520

Step-by-step explanation:

To find the relative labor cost in each country, simply divide the production number by the total value used in the labor force (with all employees).

In China: $ 2.25 x 10 workers = $ 25 dollars a day with labor.

The cost per unit of production will be: 25/48 = $0.520