Galaxy Inc., an American multinational that sells consumer electronic products, has manufacturing facilities in three countries:...

Galaxy Inc., an American multinational that sells consumer electronic products, has manufacturing facilities in three countries: Mexico, Taiwan, and Canada. The average hourly wage rate, output per worker, and annual overhead cost for each location are as follows

Mexico Taiwan Canada

Hourly wage rate Output per worker Fixed overhead cost

$3.00 20 $150,000 mexico

$6.00 36 $90,000. taiwAn

$12.00 40 $110,000 canda

Given the above figures, in your opinion, is Galaxy currently allocating its production resources optimally? If not, what should it do? Justify your answer. Suppose that Galaxy is planning to consolidate all its manufacturing into one facility. Where should it locate? Justify your answer.

Expert Solution

Rahul Sunny answered 2 years ago

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