4)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.

Per Unit:ABCD

$$$$

Selling Price160214100140

Raw material cost 24562240

Direct labour cost 66883322

Variable overhead cost 24182418

Fixed overhead cost 1610420

Profit30421740

Planned output 300125240400

Direct labour hours per unit 6832

The direct labor force is threatening to go on strike for two weeks out of the coming four. This means that only 2,160 hours will be available for production rather than the usual 4,320 hours.

If the strike goes ahead, which product or products should be produced if profits are to be maximised?

A)D and C

B)D and B

C)D only

D)B and D