a. Explain how the CEO and CFO expect to increase profit (net income) for the year by boosting production at the end of March. Assume that most overhead costs are fixed. b. Using the following assumptions, prepare a revised estimate of production results in the form of a production cost report for the month of March. Assumptions based on the CEO and CFO's request to boost production: 1. Units started and partially completed during the period will increase to 225,000 (from the initial estimate of 70,000). This is the projected ending WIP inventory at March 31. 2. Percentage of completion estimates for units in ending WIP inventory will increase to 80 percent for direct materials, 85 percent for direct labor, and 90 percent for overhead. 3. Costs incurred during the period will increase to $95,000 for direct materials, $102,000 for direct labor, and $150,000 for overhead (recall that most overhead costs are fixed). 4. All units completed and transferred out during March are sold by March 31. c. Compare your new production cost report with the one prepared by the controller. How much do you expect profit to increase as a result of increasing production during the last half of March? d. Is the request made by the CEO and CFO ethical? Explain your answer: Step 4: Assign Costs to Units Transferred Out and Units in Ending WIP Inventory