A team of five laborers working in a garment factory

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Reference no: EM131019766

A team of five laborers working in a garment factory in Indonesia divides the task of making men's dress shirts for export to Unites States. Each laborer works 10hours day, six days a week, gets paid on 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, other expenses. Each shirt sold for 40 in United States.

Total labor cost?

Total material cost?

Fixed cost?

Total revenue?

Profit?

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?

Reference no: EM131019766

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