Manufacturing cost for a new QR31 refrigerator consist entirely of fixed manufacturing overhead cost (5000 regardless of the production level). Manager received a year-end bonus of 10% on the plant's net income based on the traditional income statement. A company focus group indicate initial sales for the QR31 refrigerator in the next year will be 1 unit for $1000.

Manager must decide how many units of the new refrigerator (QR31) to produce next year, He is considering 2 options.

what are the steps to calculate and how would I explain my work

Option 1: Produce 1 unit: sold 1 unit

Option 2: Produce 5000 units: sold 1 unit

What should he do? How will each option impact the traditional income state of his company?

How will each option impact Michael's end of year bonus based on the traditional income statement?

Which option would maximize his wealth?