Accounting online discussion board

reply 2 questions my professor post question of  my accounting managerical analysis online class discussion board. The 2 questions is following bellow:

1.Aristotle Constantinos, the manager of DuraProducts’ Australian Division, is trying to set the production

schedule for the last quarter of the year. The Australian Division had planned to sell 100,000 units during

the year, but current projections indicate sales will be only 78,000 units in total. By September 30 the following activity had been reported:

                                                                     Units

Inventory, January 1 ................................ 0

Production ................................................ 72,000

Sales ........................................................ 60,000

Inventory, September 30 .......................... 12,000

  Demand has been soft, and the sales forecast for the last quarter is only 18,000 units.

  The division can rent warehouse space to store up to 30,000 units. The division should maintain a

minimum inventory level of at least 1,500 units. Mr. Constantinos is aware that production must be at least

6,000 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is

45,000 units per quarter.

  Due to the nature of the division’s operations, fixed manufacturing overhead is a major element of

product cost.

Required:

Identify the ethical issues involved in the decision Mr. Constantinos must make about the level of

production for the last quarter of the year.