Aaron McKinney is a cost accountant for Majick Systems Inc. Martin Dodd vice president of marketing , has asked Aaron to meet with representatives of Majik Systems' major competitor to discuss product cost data. Martin indicates that the sharing of these data will enable Majik Systems to determine a fair and equitable price for its products. Would it be ethical for Aaron to attend the meeting and share the relevant cost data? Please expand on your answer.
A manager of Varden Sporting Goods Company is considering accepting an order from an overseas customer. This customer has requested an order for 20,000 dozen golf balls at a price of $22 per dozen. The variable cost to manufacture a dozen golf balls is $18 per dozen. The full cost is is $25 per dozen. Varden has a normal selling price of $35 per dozen. Varden's plant has just enough excess capacity on the second shift to make the overseas order.
What are some considerations in accepting or rejecting this order? Please expand on your answer.