Which of the following combinations would result in the lowest production cost per unit? (A) Limited customer contact, limited product variety and low volume (B) Limited customer contact, limited product variety and high volume (C) Extensive customer contact, extensive product variety and low volume (D) Extensive customer contact, extensive product variety and high volume - HSC - SSCE Business Studies - Question 17 - 2013 - Paper 1

This combination would likely result in the lowest production cost per unit. High volume allows for better economies of scale while limiting customer contact and product variety helps reduce complexity and overhead costs.

This approach typically raises costs due to the complexities brought about by extensive product variety and high levels of customer contact, compounded by low production volume.

While high volume may lower costs superficially, the extensive customer contact and product variety would still contribute to increased production costs due to the complexities involved.