Units Inventory, January 1 71,700 62,300 9,400 Production Sales Inventory, September 30 The division can rent warehouse space to store up to 29,200 units. The minimum inventory level that the division should carry is 3,000 units. Mr. Cavalas is aware that production must be at least 5,640 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 45,200 units per quarter. Demand has been soft, and the sales forecast for the last quarter is only 19,300 units, Due to the nature of the division's operations, fixed manufacturing overhead is a major element of product cost Required: 1-a. 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 1-b. Will the number of units scheduled for production affect the division's reported income or loss for the year? O Yes No fV 2. Assume hat he division is using absorption costing and that he disional manager is given an annual bonus based on a visio maximize his division's operating income for the year, how many units should be scheduled for production during the last quarter? o era ng n o aval swants Required production| |units