Question

Econ help please?

Answer 1

Fill out the tables for each scenario and answer the question that follows. Use $7.25 as the minimum wage and remember that employees in the United States must be paid time-and-a-half (1.5 times the normal hourly rate) for each hour worked over 40 hours per week.

Scenario 1. A team of three laborers in Mongolia makes rugs by hand for export to the United States. The team makes 12 rugs per year working 14 hours a day, six days a week, 50 weeks a year. Each laborer is paid a wage equivalent of $1.10 per day.
The materials for each rug cost $50, and the company that sells the rugs has fixed costs of $10,000 per year for things such as energy, rent, and administrative and shipping costs.
Each rug sold for $2000 in the United States.

total labor cost= ?
total materials cost= ?
fixed costs= ?
total revenue= ?
profit= ?