Hi all,
I am wondering why it is necessary to calculate the total labour cost per location in this case? I don't understand the insights this number is supposed to generate…
Judging from the hourly rate I could already tell that China is the cheapest location, followed by the US and Europe.
Thanks in advance!
Hi there,
Indeed, the setup of the case is a bit confusing.
The way I understand it is that the total cost would enable better comparison across the regions. To get to the total cost you need to account for the estimated number of employees, which you currently don't have.
Comparing only the hourly rate won't help you much because you don't know how many workers are needed for the facility to run.
Best,
Cristian
