Railways Technical Ability Metrology and Inspection Question Bank Metrology and Inspection

  • question_answer Process I requires 20 units of fixed cost and 3 units of variable costs per piece, while process II required 50 units of fixed costs and I units of variable cost per piece. For a company producing 10 pieces per day:

    A) Process I should be chosen

    B) Process II should he chosen

    C) Either of the two processes should he chosen

    D) A combination of process 1 and process II should be chosen

    Correct Answer: A

    Solution :

    \[{{P}_{1}}=20+30x=20+3\times 10=50\,units\] \[{{P}_{2}}=50+1x=50+1\times 10=60\,units\] Process 1 is cheaper

You need to login to perform this action.
You will be redirected in 3 sec spinner