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Three locations are being considered for your factory to produce oil field drill bits. At a location in Texas, 4 workers making $15.00 per hour each would produce a total of 3 bits per 8-hour day. A Louisiana location has identical technology and productivity, but workers receive only $12 per hour each due to the weak economy. A California location would be high tech, making 6 bits total per 8-hour day with just 2 workers, but they would make $75 per hour each. Choose the best location based on labor cost per unit. Show work.

Operation Management, Management Studies

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