value: 2.00 points Butler Corporation has three divisions, each operating as a responsibility center. To provide an incentive for divisional executive officers, the company gives divisional management a bonus equal to 17 percent of the excess of actual net income over budgeted net income. The following is French Division's current year's performance Sales revenue Cost of goods sold Current Year $4,180,000 2,360,000 Gross profit Selling & admin. expenses 1,820,000 730,000 Net income $1,090,000 The president has just received next year's budget proposal from the vice president in charge of French Division. The proposal budgets a 4 percent increase in sales revenue with an extensive explanation about stiff market competition. The president is puzzled. French has enjoyed revenue growth of around 9 percent for each of the past five years. The president had consistently approved the division's budget proposals based on 4 percent growth in the past. This time, the president wants to show that he is not a fool. "I will impose a 14 percent revenue increase to teach them a lesson!" the president says to himself smugly. Assume that cost of goods sold and selling and administrative expenses remain stable in proportion to sales