4. Data Plant in US Plant in Thailand Plant in Mexico US produced : $ 53 for A and $ 56 for B Thailand produced: $45 for A and $50 for B Mexico produced: $50 for A and $52 for B Type A B Capital Type A B Capital Type A B Capital Labor Cost 2.5 3 4,000 Labor Cost 1 .75 1,500 Labor Cost .9 1 1,500 Material Cost 2 1 2,500 Material Cost 2 2.5 4,000 Material Cost 3 1 3,600 Shipping Cost .75 1.25 1,500 Shipping Cost 4 1 4,800 Shipping Cost .2 3 3,000
5. Mexico Types A B Capital $ Constraints Labor Cost .9 1 1,500 .9x+1y≤1500 Material Cost 3 1 3,600 3x+1y ≤3600 Shipping cost .2 3 3,000 .2x+3y≤3000 Total Capital 8,100 x > 0 and y > 0
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17. Why? Thailand produced: $45 for A and $50 for B P = 45x + 50y Mexico > P = 50x + 52y US >P = 53x + 56y