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  • Myanmar 6 China 10 Billings, Montana 2: City Amount of Labor

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    Karan Thakkar
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    The document compares the costs of labor and transportation from three locations - Myanmar, China, and Billings, Montana - to produce and transport a unit to Denver. It calculates the daily labor costs, transportation costs per unit, total labor and transportation costs per unit, productivity in units per day, total labor costs, and cost per unit for each location. Based on the calculations, China has the lowest total cost per unit of $0.444444444, making it the most economically favorable production location.

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    The document compares the costs of labor and transportation from three locations - Myanmar, China, and Billings, Montana - to produce and transport a unit to Denver. It calculates the daily labor costs, transportation costs per unit, total labor and transportation costs per unit, productivity in units per day, total labor costs, and cost per unit for each location. Based on the calculations, China has the lowest total cost per unit of $0.444444444, making it the most economically favorable production location.

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    © All Rights Reserved
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    7 views3 pages

    Myanmar 6 China 10 Billings, Montana 2: City Amount of Labor

    Uploaded by

    Karan Thakkar
    The document compares the costs of labor and transportation from three locations - Myanmar, China, and Billings, Montana - to produce and transport a unit to Denver. It calculates the daily labor costs, transportation costs per unit, total labor and transportation costs per unit, productivity in units per day, total labor costs, and cost per unit for each location. Based on the calculations, China has the lowest total cost per unit of $0.444444444, making it the most economically favorable production location.

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    © All Rights Reserved
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    of 3

    Question 8.

    1
    City
    Amount of labor
    Myanmar
    China
    Billings, Montana

    6
    10
    2

    Question 8.2
    Origin City
    Transportation cost per unit to Denver ($$)
    Myanmar
    1.5
    China
    1
    Billings, Montana
    0.25

    Solution
    Question 8.1
    Question 8.2

    Most economic production location


    Most favorable production location

    Question 8.1
    Cost of labor per day ($$)
    3
    2
    60

    estion 8.2
    Total labor and transportation cost per unit ($$)
    1.95
    1.444444444
    1.45

    Solution
    China
    China

    Productivity (Units/day) Total labor cost ($$)


    40
    18
    45
    20
    100
    120

    Cost per unit ($$)


    0.45
    0.444444444
    1.2

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