Read the scenario below, and address the subsequent requirements.

You are analyzing cost data for your boss related to a special order your company is considering from a large customer in Singapore. The following data are applicable to the product being ordered:

• Normal unit sales price: $49.95
• Variable unit manufacturing costs: $10.50
• Variable unit selling and administrative costs: $18.25

The customer is requesting that the sales order be accepted on the following terms:

1. The unit sales price equals the unit contribution margin plus 10%
2. Freight will be paid by the customer
3. Your company will pay a $5,000 "facilitating payment "to a "friend of the customer" to get the product through customs more quickly.

Your boss has told you this is a very important customer. Furthermore, this order will help some employees earn a little extra holiday money with overtime.

Required:

Post your responses to the following questions:

1. What are the accounting and ethical issues involved in this scenario?
2. Would you recommend the sales order be accepted on the sales terms proposed? Why or why not?

Please help ASAP!