Felipe Arrazola is a senior manager for a software consulting firm. Felipe’s firm does “turnkey” software projects, with clients paying several hundred thousand to millions of dollars for project completion. The partners of Felipe’s firm evaluate his performance based on the revenues he generates. Moreover, the partners expect Felipe to increase his revenues every year.
It is now near the end of the fiscal year. Felipe’s current sales volume places him well ahead of last year’s sales. This will be the third straight year that Felipe has increased revenues, and he is confident that one or two more years of stellar performance will vault him into the executive suite. Felipe is particularly confident in this projection, as he knows that the firm as a whole is a bit short of meeting its sales budget for the year and that he is one of the few managers who deliver steady sales growth.
One of Felipe’s customers has just called to inform Felipe that he is sure to receive a major contract from her company. The contract, valued at $2 million, is almost 10% of Felipe’s annual sales volume. The client wants to do the paperwork and issue the formal order after receiving the final specifications and details from Felipe.

Required:
a. Would the partners of Felipe’s firm prefer that he book the $2 million contract in the current fiscal year or the next fiscal year?
b. Would Felipe prefer to book the $2 million contract in the current fiscal year or the next fiscal year?
c. Suppose Felipe decides to defer the contract until next year. Do you view this act as being unethical? Why or why not?