Hello,
Regarding the answer to question #6 : "Wages will decrease by (25%*0.85)=21% to about 4% of total costs when moving production to China" what is the logic behind it? ( Multiplying it with .85 and then stating that 4% is the answer?
Thank you so much.
Hi Stephanie,
Just following up on that. Shouldn't the new total costs be lower if the wages have decreased?