Income analysis under absorption and variable costin Frand Company has no beginning inventory and sales are estimated to be 20,000 units at $75 per unit. Sales will not change if more than 20,000 units are manufactured. Frand's management is evaluating whether to manufacture 20,000 units (Proposal 1) or 25,000 units (Proposal 2). The costs and expenses related to each proposal follows. Proposal1 Total Cost Number of Units Unit Cost Manufacturing costs Variable Fixed $700,000 400,000 $1,100,000 20,000 20,000 20 Total S55 Selling & Admin Exp Variable Fixed $ 100,000 100,000 $200,000 20,000 S5 Total Proposal2 Total Cost Number of Units Unit Cost Manufacturing costs Variable Fixed $875,000 400,000 $1,275,000 25,000 25,000 16 Total S51 Selling & Admin Exp Variable Fixed $ 100,000 100,000 $200,000 20,000 S5 Total