Carlos Cavalas, the manager of Echo Products Brazilan Division, is trying to set the production schedule for the last quarter of the year The Brazilian Division had planned to sell 69.630 units during the year, but by September 30 only the following activity had been reported Inventory, January 1 Production Sales Inventory, September 30 71,500 63,300 8,200 The division can rent warehouse space to store up to 30.800 units The minimom inventory level that the division should cary s 1,400 units. Mr. Cavolas is aware that production must be at least 4.920 units per quarter in order to retain a nucleus of key employees Maximum production capacity is 45,500 units per quarter Demand has been soft, and the sales forecast for the last quorter is only 20700 nte Due to tie nature of the dvision's Demand has been soft, and the sales forecas 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 schedoled for production during the last quarter of the year? 1b. Will the number of units scheduled for production offeer the divislon's reported Income or loss for the year? 2 Assume that the division is using absorption costing and thot tho divisioral 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