Ianieri Company produces plastic consumer products. Data for lanieri Company from its 2020 income statement are shown below: Revenues $6,000,000 Variable costs 4.000.000 Fixed costs 3,000,000 Operating income S(1.000.000) Kylie Voisine, Ianieri's president, is worried about lanieri Company's low profitability. She asks Morgan Weeden, production manager, and Colin Borek, controller, to create ways to decrease After eight days, Morgan suggests decreasing variable costs to 40% of revenues by reducing the costs that lanieri currently incurs for safe disposal of wasted plastic. Colin is worried that reducing this cost would expose the company to potential environmental liabilities. He tells Morgan, "We would need to estimate the potential environmental liability costs and include them in our proposal." "You can't do that." Morgan replies. "We may have to incur environmental liability costs in the future, but it's important for this proposal to go through. Otherwise, we may have to go bankrupt and lose our jobs." costs. Required: 1. (2 points) Compute lanieri Company's breakeven revenues if variable costs are 40% of revenues 2. 3 points) Is Morgan's proposal to incorrectly report environmental costs ethical? Provide arguments that support your view. In assessing the situation and providing arguments, you're required to list the specific standards in "Institute of Management Accountants (IMA) Statement of Ethical Professional Practice" (described in Exhibit P-6 on page 11) that the management accountant should consider