A team of five laborers in Indonesia working in a garment factory divides the task of making men's dress shirts for export to the United States. Each laborer works 10 hours a day, six days a week, and is paid the Indonesian minimum wage of $2.50 per day. In one week, the team can make 500 shirts. The shirts sell for $40 each in the United States.
a. What are the labor costs for each shirt?
The labor costs for each shirt are $0.15.
b. How much would it cost to pay five workers working at the U.S. federal minimum wage to do the same job in the same amount of time?
It would cost $217.50 to pay 5 workers in the U.S. to do the same job in the same amount of time.
a. What are the labor costs for each shirt?
The labor costs for each shirt are $0.15.
b. How much would it cost to pay five workers working at the U.S. federal minimum wage to do the same job in the same amount of time?
It would cost $217.50 to pay 5 workers in the U.S. to do the same job in the same amount of time.
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