A component can be produced by any of the four processes, I, II, III and IV. Process I has fixed cost of Rs. 20 and variable cost of Rs. 3 per piece. Process II has a fixed cost of Rs. 50 and variable cost of Rs. 1 per piece. Process III has a fixed cost of Rs. 40.00 and variable cost of Rs. 2 per piece. Process IV has fixed cost of Rs. 10 and Variable cost Rs. 4 per piece. If company wishes to produce 100 pieces of the component, from economic point of view it should choose

A component can be produced by any of the four processes, I, II, III a

1.	A component can be produced by any of the four processes, I, II, III and IV. Process I has fixed cost of Rs. 20 and variable cost of Rs. 3 per piece. Process II has a fixed cost of Rs. 50 and variable cost of Rs. 1 per piece. Process III has a fixed cost of Rs. 40.00 and variable cost of Rs. 2 per piece. Process IV has fixed cost of Rs. 10 and Variable cost Rs. 4 per piece. If 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
Answer» C. Process III