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The We-Make-It factory in the United States pays its 250 workers an average of $21 per hour, including benefits. The average number of work hours per employee in a year is 1,924. The owners of the factory are considering relocating overseas to a country where they can pay workers an average of $6 per hour, including benefits, to achieve the same production levels. Assuming that the company would hire the same number of workers for the same number of hours in a new location, how much could We-Make-It save in wages alone in the first year by moving to the proposed overseas location

Respuesta :

Using proportions, it is found that the company would save $7,215,000 in wages alone in the first year by moving to the proposed overseas location.

In the United States:

  • There are 250 works.
  • They are paid $21 per hour.
  • Each year, they work on average 1,924 hours.

Hence, the company will spend in salaries, on average:

[tex]S_{US} = 250(21)(1924) = 10,101,000[/tex]

In an overseas location, the workers are paid $6 per hour, hence, on average, the company spending will be of:

[tex]S_{O} = 250(6)(1924) = 2,886,000 [/tex]

The amount saved is:

[tex]S_{US} - S_{O} = 10,101,000 - 2,886,000 = 7,215,000[/tex]

The company would save $7,215,000 in wages alone in the first year by moving to the proposed overseas location.

To learn more about proportions, you can take a look at https://brainly.com/question/24372153

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