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Use the following information to answer questions 20-23.

Paton Consultants is a consulting firm that engages clients in regards to their transfer pricing. The following Table presents the most recent period's budget and actual performance for that period. Revenue is based on hours billed to clients.

	Budget	Actual
Revenue	$ 1,000,000	$ 1,200,000
Direct Labor	$ 800,000	$ 990,000
Fixed Overhead	$ 100,000	$ 100,220
Profit	$ 100,000	$ 109,780

While Paton's CEO is happy with the performance, she's worried that she didn't set an ambitious enough budget from the get-go. She's thinking of increasing the revenue projection for the next period. Give at least one reason why this might be a good idea and at least two reasons why this might be counterproductive.