USA: +1 (725) 712-1730 
Sign in
In Myanmar, seven laborers, each making the equivalent of $2.50 per day, can produce 38 units per day. In China, nine laborers, each making the equivalent of $2.00 per day, can produce 45 units. In Billings, Montana, four laborers, each making $57.00 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.)
Expert Answer
Cost per unit = Cost per day / Number of units produced
Myanmar
Cost per day = 7 x $2.50 = $17.50
Cost per unit = $17.5 / 38 = $0.46 per unit
China
Cost per day = 9 x $2.00 = $18.00
Cost per unit = $18.00 / 45 = $0.40 per unit
Billings
Cost per day = 4 x $57.00 = $228.00
Cost per unit = $228.00 / 102 = $2.24 per unit
So, from the above calculations, the most economical location to produce the item is China, with a labor cost per unit of $0.40.
