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Galaxy Inc., an American multinational that sells consumer electronic products, has manufacturing facilities in three countries: Mexico, Taiwan, and Canada. The average hourly wage rate, output per labor hour, and the annual overhead cost for each location are as follows:

mexico taiwan canda

hourly wage rate $3.00 $6.00 $12.00

output per labor hour 20 36 40

fixed overhead cost $150,000 $90,000 $110,000

Given the above figures, in your opinion, is Galaxy currently allocating its production resources efficiently? If not, what should it do? Now, suppose that Galaxy is planning to consolidate all its manufacturing into one facility. Where should it locate? Justify your answers.

Reference no: EM132472896

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