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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 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
Correct answer is option 'B'. Can you explain this answer?
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To determine the most economical process for producing 100 pieces of the component, we need to calculate the total cost for each process and compare them.
Process I:
Fixed cost = Rs. 20
Variable cost per piece = Rs. 3
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 20 + (3 × 100) = Rs. 320
Process II:
Fixed cost = Rs. 50
Variable cost per piece = Re. 1
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 50 + (1 × 100) = Rs. 150
Process III:
Fixed cost = Rs. 40
Variable cost per piece = Rs. 2
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 40 + (2 × 100) = Rs. 240
Process IV:
Fixed cost = Rs. 10
Variable cost per piece = Rs. 4
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 10 + (4 × 100) = Rs. 410
From the calculations above, we can see that the total cost for Process II is the lowest at Rs. 150. Therefore, from an economic point of view, the company should choose Process II to produce 100 pieces of the component.
Explanation:
The total cost for each process is calculated by adding the fixed cost to the product of the variable cost per piece and the number of pieces. The process with the lowest total cost is the most economical choice. In this case, Process II has the lowest total cost of Rs. 150, making it the most economical option for producing 100 pieces of the component.
Process I:
Fixed cost = Rs. 20
Variable cost per piece = Rs. 3
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 20 + (3 × 100) = Rs. 320
Process II:
Fixed cost = Rs. 50
Variable cost per piece = Re. 1
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 50 + (1 × 100) = Rs. 150
Process III:
Fixed cost = Rs. 40
Variable cost per piece = Rs. 2
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 40 + (2 × 100) = Rs. 240
Process IV:
Fixed cost = Rs. 10
Variable cost per piece = Rs. 4
Total cost = Fixed cost + (Variable cost per piece × Number of pieces)
Total cost for 100 pieces = 10 + (4 × 100) = Rs. 410
From the calculations above, we can see that the total cost for Process II is the lowest at Rs. 150. Therefore, from an economic point of view, the company should choose Process II to produce 100 pieces of the component.
Explanation:
The total cost for each process is calculated by adding the fixed cost to the product of the variable cost per piece and the number of pieces. The process with the lowest total cost is the most economical choice. In this case, Process II has the lowest total cost of Rs. 150, making it the most economical option for producing 100 pieces of the component.
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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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer?
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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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer?.
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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer?.
Solutions for 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering.
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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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice 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 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 choosea)Process Ib)Process IIc)Process IIId)Process IVCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
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