A component can be produced by any of the four processes I, II, III and IV. The fixed cost and the variable cost for each of the processes are listed below. The most economical process for producing a batch of 100 pieces is
Process
|
Fixed cost (in Rs)
|
Variable cost per piece (in Rs)
|
I
|
30
|
3
|
II
|
50
|
1
|
III
|
40
|
2
|
IV
|
10
|
4
|
(a) I (b) II (c) III (d) IV