Refer to Problem 8.1. Shipping cost from Myanmar to Denver, Colorado, the final destination, is $3.00 per unit. Shipping cost from China to Denver is $2.00 per unit, while the shipping cost from Billings to Denver is $0.50 per unit. Considering both labor and transportation costs, which is the most favorable production location?

Data from problem 8.1

In Myanmar (formerly Burma), 6 laborers, each making the equivalent of $6 per day, can produce 40 units per day. In rural China, 10 laborers, each making the equivalent of $4 per day, can produce 45 units. In Billings, Montana, 2 laborers, each making $120 per day, can make 100 units. Based on labor costs only, which location would be most economical to produce the item?