need to explain this to a customer

Michael Cohen is a factory manager at Compary XYZ that manutactures refrigerators. For the sake of simplicity, suppose: - Manufacturing cosis 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 'tradibional' income statement. - A company focus group indicates inital sales for the QR31 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 porsonal accountant (you) about what he should choose: - Use a smart phone or web camera to record a video that provides the information below: - How will each option impact the 'traditional' income statement of Company XYZ? - How will each option impact Michael's end of year bonus based on the 'traditional' income statement? - Which option would maximize Michael's wealth? - Explain your answer as though you are talking to Michael, your client