Question

A team of 5 laborers working in a garment factory in Indonesia divides the task of making men's dress shirts for export to the United States. Each laborer works 10 hours a day, 6 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 company spends $10,000 each week to cover advertising, administration, machinery, transportation, and other expenses. Each shirt sold for $40 in the United States
Total Labor Cost: ?
Labor Cost Per Shirt: ?
Total Revenue: ?
Fixed Costs:?
Total Profit:?
Profit Per Shirt:?

Answer 1

Is that $2.50 really per day?

Answer 2

yep

Answer 3

And when it says total labor cost, what is the time period of this calculations?

Answer 4

Per week?

Answer 5

i set it up as 2.5*300*5 and i used it as per year

Answer 6

I think you should do per week, because it gives the expense as per week. You can multiply everything by 52 later (weeks in a year)

Answer 7

i think i got the total labor cost and the total revenue correct, i got $3750 as total labor cost and 1,000,000 as total revenue, fixed income as 10000, but i need help finding the total profit

Answer 8

Well profit for week would be
total revenue-$10000-total labor cost and a year would be that times 52

Answer 9

ok so i can do 1,000,000- 10,000-3750= 986250. I just used the 50 week time period from the first question that i answered

Answer 10

Yes

Answer 11

ok thanks!

Answer 12

You're welcome

Answer 13

do you know how i could answer this question:
How much would it cost to pay five workers at the U.S. federal minimum wage to do the same job in the same amount of time?