five laborers each making the equivalent of 350 per day can

five laborers, each making the equivalent of $3.50 per day, can produce 40 units per day In China, nine laborers, each Billings, Montana, four laborers, each making $63.00 per day, can make 102 units. making the equivalent of $2.25 per day, can produce 45 units. In Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1.20 per unit, while the shipping cost from Billings, Montana to Denver is $0.20 per unit Based on total costs (labor and transportation) per unit, the most economical location to produce the item is rounded to two decimal places.) with a total cost labor and transportation) per unit of S . (Enteryo response

Solution

In Myanmar,

Total labor cost = 5*3.5 = $17.5

Total shipping cost = 40*1.5 = $60

Total labor and shipping cost = 17.5 + 60 = $77.5

Total post per unit = 77.5/40 = $1.94 per unit

In China,

Total labor cost = 9*2.25 = $20.25

Total Shipping cost = 45*1.2 = $54

Total labor and shipping cost = 20.25 + 54 = $74.25

Total cost per unit = 74.25/45 = $1.65 per unit

In Montana,

Total labor cost = 4*63 = $252

Total Shipping cost = 102*.2 = $20.4

Total labor and shipping cost = 252+20.4 = $272.4

Total cost per unit = 272.4/102 = $2.67 per unit

On the basis of above calculation, the lowest cost per unit is incurred in China that is $1.65 per unit.

So, the total cost per unit is $1.65 in China.