Discuss at least three behavioural considerations in the profit-planning and budgeting process.

Mike's Bikes makes and sells high-quality replacement gears for mountain bikes. Mike Speedway, controller, is responsible for preparing the master budget and has assembled the following data for 2021. The direct labour rate includes wages and all employee-related benefits and the employer's share of Canada Pension Plan (CPP) and Employment Insurance (EI). Labour- saving machinery will be fully operational by February. Also, as of March 1, the company's union contract calls for an increase in direct labour wages that is included in the direct labour rate. Mike's Bikes expects to have 100 gear units in inventory at December 31, 2020, and has a policy of carrying 5% of the following month's projected sales in inventory during the first quarter of the year. 2021 January February March April 800 1,000 2,000 2,400 Estimated unit sales $30 $30 $25 $25 Sales price per unit Direct labour hours per unit 0.75 0.5 0.5 0.5 Direct labour hourly rate $16 $16 $18 $18 Direct materials cost per unit $5 $5 $5 $5