### Cost Analysis for Production and Shipping#### Labor Costs and Production Output1. **Myanmar:** - Number of laborers: 5 - Daily wage per laborer: $3.50 - Total daily labor cost: $5 \times 3.50 = $17.50$ - Daily production: 40 units 2. **China:** - Number of laborers: 9 - Daily wage per laborer: $2.25 - Total daily labor cost: $9 \times 2.25 = $20.25$ - Daily production: 45 units3. **Billings, Montana:** - Number of laborers: 4 - Daily wage per laborer: $57.00 - Total daily labor cost: $4 \times 57.00 = $228.00$ - Daily production: 105 units#### Shipping Costs- **Myanmar to Denver, Colorado:** $1.75 per unit- **China to Denver, Colorado:** $1.20 per unit- **Billings, Montana to Denver, Colorado:** $0.20 per unit#### Determining the Most Economical Production LocationTo determine the most economical location to produce the item, calculate the total cost (labor and transportation) per unit for each location:1. **Myanmar:** - Labor cost per unit: $ \frac{17.50}{40} = $0.44 $ - Total cost per unit: $ 0.44 + 1.75 = $2.19 $2. **China:** - Labor cost per unit: $ \frac{20.25}{45} = $0.45 $ - Total cost per unit: $ 0.45 + 1.20 = $1.65 $3. **Billings, Montana:** - Labor cost per unit: $ \frac{228.00}{105} = $2.17 $ - Total cost per unit: $ 2.17 + 0.20 = $2.37 $#### ConclusionBased on total costs (labor and transportation) per unit, the most economical location to produce the item is **China**, with a total cost (labor and transportation) per unit of **$1.65**.Note: All

Given data Total labor costs =5×3.50=17.5 Total shipping cost =40×1.75=70 Total labor cost and…

Answered: In Myanmar, five laborers, each making…

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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