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MapleTree is a renowned premier designer and manufacturer of Folding and Electric Bicycles. It aspires to be one of the leading players in the markets.
MapleTree is a renowned premier designer and manufacturer of Folding and Electric Bicycles. It aspires to be one of the leading players in the markets. There are many players in the industry including those from China. Therefore, the margins tend to be thin. MapleTree has two divisions, one division assembles and sells three models of folding bikes, and another division assembles and sells one model of electric bikes. The followings are the budget for next financial year (1 January 2023 - 31 December 2023), indicating the average selling price and variable costs of each product category. The common fixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimated to be $1,250,000 and $2,778,320 respectively. Q3. Briefly explain any possible unethical practice to be done by the company in order to report the revised new profit target. How can the potential problem(s) be resolved or controlled? MapleTree is a renowned premier designer and manufacturer of Folding and Electric Bicycles. It aspires to be one of the leading players in the markets. There are many players in the industry including those from China. Therefore, the margins tend to be thin. MapleTree has two divisions, one division assembles and sells three models of folding bikes, and another division assembles and sells one model of electric bikes. The followings are the budget for next financial year (1 January 2023 - 31 December 2023), indicating the average selling price and variable costs of each product category. The common fixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimated to be $1,250,000 and $2,778,320 respectively. Q3. Briefly explain any possible unethical practice to be done by the company in order to report the revised new profit target. How can the potential problem(s) be resolved or controlled
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