A company has the following production planned for the next four weeks. The figures reflect the full capacity level of operations. Planned output is equal to the maximum demand per product.

The direct labour force is threatening to go on strike for two weeks out of the coming four. This means that only 2160 hours will be available for production rather than the usual 4320 hours.
lf the strike goes ahead, which product or products should be produced if profits are to be maximized?

(a) DandA

(b) BandD

(c) Donly

(d) BandC (2 marks)
ACCA F5 Performance Management

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A B Product $ per unit $ per unit C $ per unit $ per unit D Selling price 160 214 100 140 Raw material cost 24 Direct labour cost 66 Variable overhead cost 24 Fixed overhead cost 16 Profit 30 Planned output Direct labour hours per unit 300 125 56 22 40 88 33 22 18 24 18 10 8 12 42 13 48 240 400 6 8 3 2