Terry Pineno,new-Accounts Manager at East Bank of Clarion,has Been Asked

Terry Pineno,new-accounts manager at East Bank of Clarion,has been asked to project how many new accounts she will open during 20x2.The local economy has been growing,and the bank has experienced a 10% increase in the number of new accounts over each of the past five years.In 20x1,the bank had 10,000 accounts.
Pineno is paid a salary,plus a bonus of $20 for every new account above the budgeted amount.Thus,if the annual budget calls for 1,000 new accounts,and 1,080 new accounts are obtained,her bonus will be $1,600 (80 * $20).
Pineno believes that the local economy will continue to grow at the same rate in 20x2 as it has in recent years.She decided to submit a projection of 700 new accounts for 20x2.
Required:
Your consulting firm has been hired by the bank president to make recommendations for improving the bank's operation.Write a memorandum to the president defining and explaining the negative consequences of budgetary slack.Also discuss the bank's bonus system for the new-accounts manager and how the bonus program tends to encourage budgetary slack.