A team of three laborers in Mongolia makes rugs by hand for export to the United States. The team works 14 hours a day, six days a week, 50 weeks a year, and is able to make 12 rugs a year. Each laborer is paid a wage that is equivalent to $1.10 per day. The rugs sell for $2,000 each in the United States.
a. What are the total labor costs involved in making these 12 rugs?
The total labor costs involved in making these 12 rugs is $330 a year.
b. How much profit does this company make every year?
This company makes $23,670 in profits every year.
c. If a team of three workers in the United States, each making the federal minimum wage, produced these 12 rugs, what would the total labor costs be? Don't forget that these workers would be working overtime.
The total labor costs would be $91,350.
a. What are the total labor costs involved in making these 12 rugs?
The total labor costs involved in making these 12 rugs is $330 a year.
b. How much profit does this company make every year?
This company makes $23,670 in profits every year.
c. If a team of three workers in the United States, each making the federal minimum wage, produced these 12 rugs, what would the total labor costs be? Don't forget that these workers would be working overtime.
The total labor costs would be $91,350.
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Yep, that seems right to me