• # 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 chosenB) Process II should he chosenC) Either of the two processes should he chosenD) A combination of process 1 and process II should be chosen

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