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In Myanmar​, seven ​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 45 units. In Billings comma Montana​, four ​laborers, each making $ 63.00 per​ day, can make 102 units.

Based on labor cost per unit only, the most economical location to produce the item is ____, with a labor cost per unit of $__. (Enter your response rounded to two decimal places.)

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Shahzaibfaraz

Answer:

Based on labor cost per unit only, the most economical location to produce the item is Myanmar, with a labor cost per unit of $0.44.

Explanation:

To find the most economical location, we need to find the labor cost per unit of all three locations and select the location with the lowest labor cost per unit.

The labor costs per unit for all three location is:

Total labor cost-Myanmar = 7 * 2.5 = $17.5

Labor cost per unit-Myanmar = 17.5 / 40 = $0.4375 per unit rounded off to 0.44.

Total labor cost-China = 10 * 2.25 = $22.5

Labor cost per unit-China = 22.5 / 45 = $0.5 per unit

Total labor cost-Billings,Montana = 4 * 63 = $252

Labor cost per unit-Myanmar = 252 / 102 = $2.47 per unit

Thus, the mosyt economical location is Myanmar.

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