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1. Assume that the division is using absorption costing and that the divisional manager is giben an annual bonus based on divisional operating income. If Mr Cavalas wants to maximize his division's operating income for the year,how many units should be scheduled for production during the last quarter?(see the formula in 1 above).Explain.

2.Identify the ethical issues involved in the decision Mr Cavalas must make about the level of production for the last quarter of the year.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9416642

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