The cost to pay five workers at the U.S. federal minimum wage to do the same job in the same amount of time is $5.08 per shirt.
The unitary method is a method for solving a problem by the first value of a single unit and then finding the value by multiplying the single value.
5 Indonesian laborers work 60 hours per week = 300 hours per week
They are paid $2.50 per day x 6 days x 5 workers = $105 per week
They produce 500 shirts per week, so the labor cost per shirt
= $105 / 500
= $0.21 per shirt
if the firm operating in the US, it would need to pay each worker:
(40 x $7.25) + (20 x $10.88)
= $507.60 per worker x 5 workers
= $2,538
if they produce 500 shirts, the labor cost per shirt will be
= $2,538 / 500
= $5.08 per shirt
Learn more about the unitary method;
https://brainly.com/question/23423168
#SPJ1