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HW 6 A Saved Help 1 Carlos Cavalas, the manager of Echo Products' Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 67,650 units during the year, but by September 30 only the following activity had been reported: 7 points Skipped Inventory, January 1 Production Sales Inventory, September 30 Units 0 72,400 61,500 10,900 eBook The division can rent warehouse space to store up to 30,800 units. The minimum inventory level that the division should carry is 1,800 units. Mr. Cavalas is aware that production must be at least 6,540 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 44,800 units per quarter. Print Demand has been soft, and the sales forecast for the last quarter fixed manufacturing overhead is a major element of product cost. only 20,000 units. Due to the nature of the division's operations, References 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

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