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In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item?

In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $3 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $2 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $60 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item?

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 (formerly Burma), 6 laborers, each
making the equivalent of $3 per day, can produce 40 units per
day. In rural China, 10 laborers, each making the equivalent
of $2 per day, can produce 45 units. In Billings, Montana,
2 laborers, each making $60 per day, can make 100 units.
Based on labor costs only, which location would be most economical to produce the item?

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