how will each option kmpact michaels end of year bonus based on the traditional income statemet?

Michael Cohen is a factory manager at Company XYZ that manufactures refrigerators. For the sake of simplicity, suppose: - Manufacturing costs for a new QR31 refrigerator consist entirely of fixed manufacturing overhead costs ( $5,000 regardless of the production level). - Michael receives a year-end bonus of 10% on the plant's net income based on the 'traditional' income statement. - A company focus group indicates initial sales for the OR31 refrigerator in the next year will be 1 unit for $1,000. Michael must decide how many units of the new refrigerator (QR31) to produce next year. Michael is considering 2 options: - OPTION 1 - Produced 1 unit; sold 1 unit - OPTION 2-Produced 5,000 units; sold 1 unit Because Michael is not very comfortable with numbers, he consults with his personal accountant (you) about what he should choose