Cost per Unit and Labor Costs
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In Cambodia, six laborers, each making the equivalent of $2.75 per day, can produce 40 units per day. In China, 10 laborers, each making the equivalent of $1 per day, can produce 45 units. In Billings, Montana, two laborers, each making $61 per day, can make 100 units.
(a) Based on labor costs only, which location would be most economical to produce the item?
(a) Cambodia
(b) China
(c) Montana.
(b) What is the cost per unit in the most economical location?
$ ____________ per unit
Round your answer to 2 decimal places; for example, 1.23.
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This solution provides calculations for cost per unit and labor costs.
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