Exams › GATE › Technical

A component can be produced by any of the four processes I, II, III and IV. The fixed cost and the variable cost for each of the processes are listed below. Process | Fixed cost (in Rs.) | Variable cost per piece (in Rs.) I | 20 | 3 II | 50 | 1 III | 40 | 2 IV | 10 | 4 The most economical process for producing a batch of 100 pieces is

1. I
2. II
3. III
4. IV

Correct answer: II

Solution

Process II is the most economical choice because it has the lowest total cost when considering both fixed and variable costs for producing 100 pieces, resulting in a total cost of Rs. 150, which is less than the total costs of the other processes.

Related GATE Technical questions

• Q.9 In vibration isolation, which one of the following statements is NOT correct regarding Transmissibility (T)?
• A thin plate of uniform thickness is subject to pressure as shown in the figure below. Under the assumption of plane stress, which one of the following is correct?
• For laminar forced convection over a flat plate, if the free stream velocity increases by a factor of 2, the average heat transfer coefficient
• A pure substance at 8 MPa and 400 °C is having a specific internal energy of 2864 kJ/kg and a specific volume of 0.03432 m³/kg. Its specific enthalpy (in kJ/kg) is ______
• The flatness of a machine bed can be measured using
• A robot arm PQ with end coordinates P(0,0) and Q(2,5) rotates counter clockwise about P in the X Y plane by 90°. The new coordinate pair of the end point is

⚔️ Practice GATE Technical free + battle 1v1 →