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CHUCK SA has the following production plan for the next 4 weeks. The values shown below reflect the maximum capacity levels of the company. The

CHUCK SA has the following production plan for the next 4 weeks. The values shown below reflect the maximum capacity levels of the company. The planned production is equal to the maximum demand for each type of product.

A

B

C

D

$/Unit

$/Unit

$/Unit

$/Unit

Sale price

180

210

90

130

Raw material cost

24

56

22

40

Labor cost

66

88

33

22

Variable indirect costs

24

18

24

18

Fixed indirect costs

16

10

8

12

Margin per unit

30

42

13

48

Planned Production

300

125

240

400

Labor cost per unit

6

8

3

2

The Direct Labor Force is organizing a strike for two weeks of the next 4 weeks. This means that only a total of 2,160 hours will be available for production, instead of the usual 4,320 hours.

REQUESTED:1. If the strike is carried out, indicate which product or products should be prioritized and in what order if the objective is to maximize utility.

Please explain step by step.

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