Tara Pineno, New-Accounts Manager at East Bank of Clarion, Has

Tara Pineno, new-accounts manager at East Bank of Clarion, has been asked to project how many new accounts she will open during 20 x 2. 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 20 x 1, the bank had 10,000 accounts.
Tara 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 x $20).
Pineno believes that the local economy will continue to grow at the same rate in 20 x 2 as it has in recent years. She decided to submit a projection of 700 new accounts for 20 x 2.
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.