Javier Gonzales is the manager of the Repairs and Maintenance Department of JG Industries. He is responsible for preparing his departments annual budget. Most managers in the company inflate their budget numbers by at least 10 percent because their bonuses depend upon how much below budget their departments operate. Gonzales turned in the following information for his departments budget for next year to the companys budget committee: a Budget This Year Actual This Year Budget Next Year Supplies $20,000 $16,000 $24,000 Labor 80,000 82,000 96,000 Utilities 8,500 8,000 10,200 Tools 12,500 9,000 15,000 Hand-carried equipment 25,000 16,400 30,000 Cleaning materials 4,600 4,200 5,520 Miscellaneous 2,000 2,100 2,400 Totals $152,600 $137,700 $183,120 Because the figures for next year are 20 percent above those in this years budget, the budget committee questioned them. Gonzales defended them by saying that he expects a significant increase in activity in his department next year. What do you think are the real reasons for the increase in the budgeted amounts? What ethical considerations enter into this situation