Question

In Myanmar​, six ​laborers, each making the equivalent of $3.00 per​ day, can produce 40 units per day. In China​, ten ​laborers, each making the equivalent of $2.00 per​ day, can produce 45 units. In Billings, Montana​, two ​laborers, each making $60.00 per​ day, can make 100 units. Based on labor cost per unit​ only, the most economical location to produce the item is

Answer 1

China

Step-by-step explanation:

Calculation to determine which location would be most economical to produce the item

Using this formula

LaborCost per Unit=Labor Cost per Day/Production(units per day)

Let plug in the formula

Myanmar = 6 Laborers x $3/day = $18/day

Myanmar=$18/day/ 40 units

Myanmar= $0.45/unit

China = 10 Laborers x $2/day = $20/day

China= $20/day/ 45 units

China= $0.444/unit

Montana = 2 Laborers x $60/day = $120/day

Montana= $120/day/100 units

Montana = $1.20/unit

Therefore the location that would be most economical to produce the item is CHINA