In Myanmar, six laborers, each making the equivalent of $2.50 per day, can produce 40 units per day. In China, tenlaborers, each making the equivalent of $1.75 per day, can produce 51 units. In Billings, Montana, four laborers, eachmaking $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 toDenver 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 iswith a total cost (labor and transportation) per unit of $(Enter your response rounded to twodecimal places.)

Here, for each location, I would determine the labor cost, the total shipping costs, and then, the…

Answered: Based on total costs (labor and…

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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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.)