Jane Austen was hired during January 2017 to manage the home products division of Waco Products. As part of her employment contract, she was told that she would get $5,000 of additional bonus for every 1% increase that the division's profits exceeded those of the previous year Soon after coming on board, Jane met with her plant managers and explained that she wanted the plants to be run at full capacity. Previously, the plant had employed just-in-time inventory practices and had consequently produced units only as they were needed. Jane stated that under previous management the company had missed out on too many sales opportunities because it didn't have enough inventories on hand. Because previous management had employed just-in-time inventory practices, when Jane came on board there was virtually no beginning inventory. The selling price and variable costs per unit remained the same from 2016 to 2017. Additional information is provided below 2016 2017 Net income $300,000 S 525,000 30,000 25,000 $1,350,000 S1,350,000 $ 45 25,000 25,000 Units produced Units sold Fixed manufacturing overhead costs Fixed manufacturing overhead costs per unit S54 Required: A. Calculate Jane's bonus based upon the net income shown above. B. Re-compute the 2016 and 2017 results using variable costing, c. What will Jane's bonus be under variable costing method? D. What do you think of Jane'ss action? E. Provide some measure that the company should provide to ensure that the employees will behave ethically based on the above scenario.