Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell $68,090$ units during the year, but by September $30$ only the following activity had been reported:

$\backslash$table$[[$Inventory$,$ January $1,$Units$],[$Production$,71,400],[$Sales$,61,900],[$Inventory$,$ September $30,9,500]]$

The division can rent warehouse space to store up to $29,000$ units. The minimum inventory level that the division should carry is $1,800$ units. Mr$.$ Cavalas is aware that production must be at least $5,700$ units per quarter in order to retain a nucleus of key employees. Maximum production capacity is $45,400$ units per quarter.

Demand has been soft, and the sales forecast for the last quarter is only $19,600$ units. Due to the nature of the digision's operations, fixed manufacturing overhead is a major element of product cost.

Required:

$1$a$.$ Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year?

$1$b$.$ Assume that the division is using variable costing. 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?