Mechanical Engineering Exam  >  Mechanical Engineering Questions  >  Process Xhas a fixed cost of Rs. 50,000 per m... Start Learning for Free
Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equal
  • a)
    1200
  • b)
    1400
  • c)
    1800
  • d)
    2000
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost ...
TCX ⇒ TCY
⇒ 50,000 + 10 N = 20,000 + 25 N
∴ 15 N = 30,000
∴ N = 2,000 unit
View all questions of this test
Most Upvoted Answer
Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost ...
Understanding Total Costs
To find the value at which the total costs of processes X and Y are equal, we will first define the total cost formula for each process.
Total Cost Formula
- Process X:
- Fixed Cost = Rs. 50,000
- Variable Cost = Rs. 10 per unit
- Total Cost (TC_X) = Fixed Cost + (Variable Cost per unit * Number of units)
- TC_X = 50,000 + 10 * Q
- Process Y:
- Fixed Cost = Rs. 20,000
- Variable Cost = Rs. 25 per unit
- Total Cost (TC_Y) = Fixed Cost + (Variable Cost per unit * Number of units)
- TC_Y = 20,000 + 25 * Q
Setting the Total Costs Equal
To find the quantity (Q) where the total costs of processes X and Y are equal, we set TC_X equal to TC_Y:
- 50,000 + 10 * Q = 20,000 + 25 * Q
Solving for Q
1. Rearranging the equation:
50,000 - 20,000 = 25 * Q - 10 * Q
30,000 = 15 * Q
2. Dividing both sides by 15:
Q = 30,000 / 15
Q = 2,000 units
Conclusion
The total costs of processes X and Y will be equal when the quantity produced is 2,000 units. Therefore, the correct answer is option D: 2000.
Attention Mechanical Engineering Students!
To make sure you are not studying endlessly, EduRev has designed Mechanical Engineering study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Mechanical Engineering.
Explore Courses for Mechanical Engineering exam

Similar Mechanical Engineering Doubts

Top Courses for Mechanical Engineering

Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer?
Question Description
Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. 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 Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. 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 Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer?.
Solutions for Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering. Download more important topics, notes, lectures and mock test series for Mechanical Engineering Exam by signing up for free.
Here you can find the meaning of Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Process Xhas a fixed cost of Rs. 50,000 per month and a variable cost of Rs. 10 per unit. Process Y has a fixed cost of Rs. 20,000 per month and a variable cost of Rs. 25 unit. At which value, total costs of processes X and Y will be equala)1200b)1400c)1800d)2000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
Explore Courses for Mechanical Engineering exam

Top Courses for Mechanical Engineering

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev