Please make the previous tutor's answer make sense. (They are treating all the US dollar currencies in Table 9-3 as if they are Euros when they are in fact US dollars.

My original question was:

I need a tutor to explain another tutor's answer.

Original question:

Use the total cost of ownership model to evaluate Zara's decision to outsource its clothing production to low-cost Asian countries, especially China. Make sure to consider associated costs such as hourly labor, transportation, tariffs, etc. for China, India, Portugal (closer to home), and Spain (local). HINT Hourly costs are given in Table 9-3 in the safe URL below, but not all costs are included. For others, perform an internet search to get the exact cost numbers or use relative measures.

Safe URL:

file:///C:/Users/user/Downloads/Zara%20Case%20(1).pdf

Again, they are assuming that the values in Table 9-3 are in Euros when they are in US Dollars, so these numbers do not need to be converted from Euros to US Dollars. They can be converted from Dollars to Euros, but why are they assumed to be in Euros when the table clearly states US Dollars?

Tutor's answer:

Previous tutor's Explanation: Please explain how they might have arrived at these amounts:

Outsourcing clothing production using a total cost of ownership model with country-specific hourly labor costs (USD) The whole cost, including transportation costs and tariffs, is expressed in US dollars (USD) China $1.50 $3.00 $0.35 $4.85 India $1.25 $2.50 $0.50 $4.25 Portugal $6.20 $2.00 $0.65 $8.85 Spain $4.00 $1.00 $0.45 $5.45

According to the findings of the previous research, the most financially prudent course of action for Zara would be to move their manufacture to China. China has a total cost of ownership of $4.85, which is much lower than India's ($4.25), Portugal's ($8.85), and Spain's ($5.45) respective values. In addition, there are no taxes or duties to pay when outsourcing to China.

For hourly wage cost:

How does 0.62 and 0.43 become $1.50?

How does 0.60 and 0.39 become 1.25?

How does 4.51 and 3.70 become 6.20?

How does 8.49 and 6.79 become 4.00?

This makes no sense. Please make it make sense. Please?!!