Atextile factory in the united states pays 300 workers a total of $9 million each year to produce 4.5 million shirts. a foreign factory employs 225 workers at a total cost of $1,050,000 to produce 2,500,000 shirts. how do the labor costs per shirt of the american and foreign factory compare?

$2 and $0.42 per shirt.

Explanation:

Given: US factory produce 4.5 million shirts.

           Total cost of producing shirts is $9 million.

            Foreign factory produce 2500000 shirts.

            Total cost of producing shirts is $ 1050000.

As we know cost of producing 4.5 million shirts is $9 million

So, we will unitary method for finding cost of one shirt.

∴ Cost of 1 shirt produced =

∴Cost of producing 1 shirt by US´s textile factory is $2.

Similarly, as cost of producing 2500000 shirts by foreign factory is $1050000.

∴Cost of 1 shirt produced =

∴Cost of producing 1 shirt by foreign textile factory is $0.42.

The labour cost per shirt of America and foreign factory is respectively.

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