A component can be produced by any of the four processes

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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

1. I
2. II
3. III
4. IV

Correct Option: B

TC = Fixed Cost + Variable cost
TC_I = 20 + 100 × 3 = Rs.320
TC_II = 50 + 100 × 1 = Rs.150
TC_III = 40 + 100 × 2 = Rs.240
TC_IV = 10 + 100 × 4 = Rs.410
Since total cost for the Process II is minimum
So II is cost for economical point of view