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BB is interested in opening a new plant in country M so it can take advantage of the less expensive local labor and material costs
BB is interested in opening a new plant in country M so it can take advantage of the less expensive local labor and material costs when producing Green Shampoo. However, it is important to know if BB can benefit from these lower costsin other words, you need to determine if the productivity is at least as good in country M as it is in the plants in the United States. In country M, the estimated labor cost to produce 500 bottles is $1,000, the estimated material cost for 500 bottles is $4,000, and the estimated overhead cost is $500. Green Shampoo will be sold in the local market for $10. Will the new plant have sufficient productivity to be profitable? Select an option from the choices below and click Submit. Yes, the productivity is greater than 1. No, the productivity is less than 1. No, the productivity is equal to 1
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