Units Inventory, January 1 Production Sales Inventory, September ?? 2,400 2,0e0 400 The division can rent warehouse space to store up to 1,000 units. The minimum inventory level that the division should carry is 50 units. Mr. Cavalas is aware that production must be at least 200 units per quarter in order to retain a nucleus of key employees Maximum production capacity is 1,500 units per quarter. es soft, and the sales forecast for the last quarter is only 600 units. Due to the nature of the division's operations 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. 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 2 Req 1A Req 1B