A team of five laborers in Indonesia working in a garment factory divides the task of making men's dress shirts for export to the United States.

Each laborer works 10 hours a day, six days a week, and is paid the Indonesian minimum wage of $3.50 per day. In one week, the team can make 500 shirts. The shirts sell for $40 each in the United States.

What are the labor costs for each shirt? You can figure this out by multiplying the number of workers by the number of days they work and the amount they are paid per day, and dividing the total by the number of shirts produced weekly.