Question $1$: Labour Productivity

A company is considering two locations for manufacturing its products: Location X and Location Y$.$ The labour costs and production capacities at each location differ. Below are the details for each location:

Location X:

Labour cost per day: $$224$

Hours required per unit: $40$

Maximum production capacity: $1,000$ units per month Location Y:

Labour cost per hour: $$280$

Hours required per unit: $70$

Maximum production capacity: $1,200$ units per month

Question $1-1$

Calculate the labour cost per unit for each location.

Question $1-2$

Note: this answer does not require a calculation but an analysis of the information.

If the company plans to produce $900$ units per month, which location should they choose based on labour cost per unit?

Question $1-3$

Note: this answer does not require a calculation but an analysis of the information.

If the company plans to increase production to $1,100$ units per month, which location is the better option considering both labour costs per unit and productivity capacity?

Question $2$: Centre of Gravity Method