The division can rent warehouse space to store up to 29,600 units. The minimum inventory level that the division should carry is 2,800 units. Mr. Cavalas is aware that production must be at least 5,880 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 44,400 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 19,800 units. Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost. Required: 1a. Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year? 1b. 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? Complete this question by entering your answers in the tabs below. Req 1A. Req 18: Req 2 Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year? Required production units