In Myanmar, six laborers, each making the equivalent of $2.50 per day, can produce 42 units per day. In China, ten laborers, each making the equivalent of $2.25 per day, canproduce 51 units. In Billings, Montana, three laborers, each making $57.00 per day, can make 102 unitsBased on labor costs only, which location would be most economical to produce the item?For each location, calculate the labor cost per unit using the following formula:Labor cost per dayProduction (units per day)($2.50)(6)42= Labor cost per unitThe labor cost per unit for Myanmar isLabor cost per dayProduction (units per day)The labor cost per unit for China = $0.44 dollars/unit (round your response to two decimal places).The labor cost per unit for Billings, Montana = $1.68 dollars/unit (round your response to two decimal places).Based on labor costs per unit only, the most economical location to produce the item is Billings, Montana= $0.36 dollars/unit (round your response to two decimal places).

Labor cost is the expense incurred on the manpower usage while producing an goods or service. It is…

Answered: In Myanmar, six 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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Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast demand 62 84 86 90 90 Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. Year 1 2 3 4 5 Extra capacity needed (units) Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.…
A service company is considering whether or not it should outsource its delivery services. The service company employs 400 workers at an average annual wage of $22,000 plus another 39% for fringe benefits. Annual fixed costs associated with delivery services are $1,500,000. A transportation company will provide similar services for a fixed annual cost of $7,500,000 plus a variable cost of $21,000 per employee required. The transportation company would need only 90% of the current employees at the service company. What are the annual costs of using its current staff at the service company and transportation company? What would your final decision be for the service company?
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Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 86 90 Year Forecast demand Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units, year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity, Round your answers to the nearest whole number. Year 1 Additional machines needed 2 1 24 Extra capacity needed (units) C. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 4 3 4 5 PE
Use the following for the next 2 questions: A company forecasts that it will ship 120,000 boxes of product in June. The product has a monthly turnover of 3. The company plans to use its facility to ship 80,000 boxes and the balance of the 40,000 boxes will ship from a rented facility. Space may be rented for a charge of $7 per box per month with an in-and-out handling charge of $0.45 per box shipped. 1. What is the rented (fixed) storage cost for June? - $280,000 - $180,000 - $42,500 - $250,000 - $93,333 - $153,333 - $173,333 2. What is the rented variable cost for June? - $33,333 - $43,333 - $6,000 - $38,000 - $18,000 - $28,000 - $23,333
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