apter b Homework Set 4 Units Inventory, January 1 Production 73,200 62,600 10,600 Sales Inventory, September 30 10 points The division can rent warehouse space to store up to 30,800 units. The minimum inventory level that the division should carry units, Mr, Cavalas is aware that production must be at least 6,360 units per quarter in order to retain a nucleus of key employe Maximum production capacity is 44700 units per quarter. eBook Demand has been soft, and the sales forecast for the last quarter is only 20,400 units. Due to the nature of the division's operat fixed manufacturing overhead is a major element of product cost Required: 1a. Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter the year? 1b. Will the number of units scheduled for production affect the division's reported income or loss for the year? 2. Assume that the division is using absorption costing and that the divisional manager is given an annual bonus based on division operating income. If Mr. Cavalas wants to maximize his division's operating income for the year, how many units should be schedule for production during the last quarter? Print References Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year? Tiunits Required production Re 1A Reg 1B 4 Units Inventory, January 1 Production Sales Inventory, September 30 73,200 62,600 10,600 10 points The division can rent warehouse space to store up to 30,800 units. The minimum inventory level that the division should carry is 1,500 units. Mr. Cavalas is aware that production must be at least 6,360 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 44,700 units per quarter eBook Demand has been soft, and the sales forecast for the last quarter is only 20,400 units. Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost Required: la. Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year? 1b. Will the number of units scheduled for production affect the division's reported income or loss for the year? 2. Assume that the division is using absorption costing and that the divisional manager is given an annual bonus based on divisional operating income. If Mr. Cavalas wants to maximize his division's operating income for the year, how many units should be scheduled for production during the last quarter? Print References Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Reg 2 Assume that the division is using absorption costing and that the divisional manager is given an annual bonus based on divisional operating income. If Mr. Cavalas wants to maximize his division's operating income for the year, how many units should be scheduled for production during the last quarter? units Required production
