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

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

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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In Myanmar, six 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 $1.75 per day, can produce 51 units. In Billings, Montana, four laborers, each making $63.00 per day, can make 100 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.75 per unit. Shipping cost from China to Denver is $1.00 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 with a total cost (labor and transportation) per unit of $ (Enter your response rounded to two decimal places.)
Transcribed Image Text:In Myanmar, six 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 $1.75 per day, can produce 51 units. In Billings, Montana, four laborers, each making $63.00 per day, can make 100 units. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $1.75 per unit. Shipping cost from China to Denver is $1.00 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 with a total cost (labor and transportation) per unit of $ (Enter your response rounded to two decimal places.)
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