Answer
Mexico: ${$0.63}$/mug
US: ${$0.52}$/mug
Work Step by Step
The minimum hourly Mexican wage is 7.5 pesos, which is equal to ${$0.63}$ using the exchange rate, so it costs ${$0.63}$ to make a mug in Mexico.
The minimum hourly wage in the US is ${$7.25}$, and by making 14 mugs an hour, the average cost to make a mug in the US is $\frac{$7.25}{14}$ = ${$0.52}$.
