Respuesta :
Answer:To determine the most favorable location for production considering both labor and transportation costs, we need to calculate the total cost for producing 100 units at each location.
Let's assume:
Labor cost per day per laborer = $60.00
Number of laborers required to produce 100 units = 100 units
Transportation cost per unit
Now, we'll calculate the total cost for producing 100 units at each location:
Location A:
Labor cost = $60.00 per laborer per day × 100 laborers = $6000.00
Transportation cost = (100 units × $0.50 per unit) = $50.00
Total cost = Labor cost + Transportation cost = $6000.00 + $50.00 = $6050.00
Location B:
Labor cost = $60.00 per laborer per day × 100 laborers = $6000.00
Transportation cost = (100 units × $0.70 per unit) = $70.00
Total cost = Labor cost + Transportation cost = $6000.00 + $70.00 = $6070.00
Location C:
Labor cost = $60.00 per laborer per day × 100 laborers = $6000.00
Transportation cost = (100 units × $0.40 per unit) = $40.00
Total cost = Labor cost + Transportation cost = $6000.00 + $40.00 = $6040.00
Location D:
Labor cost = $60.00 per laborer per day × 100 laborers = $6000.00
Transportation cost = (100 units × $0.60 per unit) = $60.00
Total cost = Labor cost + Transportation cost = $6000.00 + $60.00 = $6060.00
Comparing the total costs:
a) Location A: $6050.00
b) Location B: $6070.00
c) Location C: $6040.00
d) Location D: $6060.00
Therefore, Location C has the most favorable production cost considering both labor and transportation costs.
Explanation:
