Help with this plz Linda Ellis, division manager, is elevated and rewarded on the basis of budgetary performance. Linda, her assistants, and the plantmanagers are all eligible to receive a bonus if actual divisional profits are between budgeted profits and 120% of budgeted profits. Thebonuses are based on a fixed percentage of actual profits. Profits above 120% of budgeted profits earn a bonus at the 120% level (in otherwords, there is an upper limit on possible bonus payments). If the actual profits are less than budgeted profits, no bonuses are awarded.Consider the following actions taken by Linda:a. Linda tends to overestimate expenses and underestimate revenues. This approach facilitates the ability of the division to attainbudgeted profits. Linda believes that the action is justified because it increases the likelihood of receiving bonuses and helps to keep themorale of the managers high.b. Suppose that toward the end of the fiscal year, Linda saw that the division would not achieve budgeted profits. Accordingly, sheinstructed the sales department to defer the closing of a number of sales agreements to the following fiscal year. She also decided towrite off some inventory that was nearly worthless. Deferring revenues to next year and writing off the inventory in a no-bonus yearincreased the chances of a bonus for next year.C. Assume that toward the end of the year, Linda saw that actual profits would likely exceed the 120% limit and that she took actionssimilar to those described in Item b.Conceptual Connection: Comment on the ethics of Linda's behavior. Are her actions right or wrong? What role does the company play inencouraging her actions? Why? Suppose that you are the marketing manager for the division, and you receive instructions to defer theclosing of sales until the next fiscal year. What would you do?

Budgeted profits : The net outcome of balancing all applicable sales or revenue budgets, which may…

Linda Ellis, division manager, is elevated and rewarded on the basis of budgetary performance. Linda, her assistants, and the plant managers are all eligible to receive a bonus if actual divisional profits are between budgeted profits and 120% of budgeted profits. The bonuses are based on a fixed percentage of actual profits. Profits above 120% of budgeted profits earn a bonus at the 120% level (in other words, there is an upper limit on possible bonus payments). If the actual profits are less than budgeted profits, no bonuses are awarded. Consider the following actions taken by Linda: