Following statements are given for plant location strategies. Statement I White goods manufacturing companies have separate plants for colour TVs, washing machines, microwave ovens, etc. for avoiding confusion and bringing about economies of scale. Statement II Pepsi and Coke have bottling plants scattered all over the country which cater to different regions to avoid confusion at the main manufacturing set-up rather than reducing overall transportation costs and the lead time for supplying goods in the markets. Find the correct answer of the above statements being correct or incorrect.

Answer: Option C