• Vogel's Approximation Method (VAM) in Profit Maximization:
• In a standard transportation problem (cost minimization), VAM calculates penalty costs by taking the difference between the two lowest unit costs in each row and column.
• In a profit maximization transportation problem, the penalty represents the opportunity loss of not selecting the most profitable cell. Therefore, row and column penalties are determined by finding the difference between the two highest unit profits (costs) in each row and column, ensuring allocations prioritize cells with maximal economic returns.

Correct option: (4) Finding the difference between the two highest unit costs in each row and column