Avery Equipment Rental is a regional firm servicing agricultural and construction clients in the northern plains states. The CFO of Avery is preparing next quarter’s budget and has two forecasts for sales in the Western Branch. The market research group in the planning division estimates sales of $12.5 million based on econometric forecasts. The branch manager estimates sales of $11 million. 

Required

a. What are two possible explanations for the difference between the planning division’s and the branch manager’s estimates?

b. Suppose that instead of $11 million, the branch manager estimates $13.4 million in sales. What are two possible explanations for the difference between the planning division’s and the branch manager’s estimates?

c. Do any of these explanations suggest unethical behavior by the branch manager?