Answer
The cost per mug in Mexico is $21\%$ higher
Work Step by Step
From part (a) the labor cost per mug in each of the two countries is:
Mexico: $\$0.63$
U.S.: $\$0.52$
We calculate How much higher are labor costs per unit (per mug) in Mexico:
$\$0.63\div \$0.52\approx 1.21$
So the cost per mug in Mexico is $21\%$ higher.
