Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is...

Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is...

Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.50 per unit. Shipping cost from China to Denver is $1 per unit, while the shipping cost from Billings to Denver is $.25 per unit. Considering both labor and transportation costs, which is the most favorable production location?

Problem 8.1

In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item?

Jul 30 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions