Q 70. A component can be produced by any of the four processes I, II, III and IV. Process I has a fixed cost of Rs.20 and variable cost of Rs. 3 per piece. Process II has a fixed cost of Rs. 50 and variable cost of Re. 1 per piece. Process III has a fixed cost of Rs. 40 and variable cost of Rs. 2 per piece. Process IV has a fixed cost of Rs.10 and variable cost of Rs. 4 per piece. If the company wishes to produce 100 pieces of the component, from economic point of view it should choose
(A) Process I
(B) Process II
(C) Process III
(D) Process IV
Answer: (B)
Explanation:.
