Consider the following conversation between Mary, a self-employed printer, and Peter, an assistant in the athletics and

Question:

Consider the following conversation between Mary, a self-employed printer, and Peter, an assistant in the athletics and recreation department of a local university.
Peter: Mary, we have been customers of yours for several years and we currently need 10,000 posters for the upcoming basketball season. Here is the mock-up and we will need them in one month. What price can you give us?
Mary: Based on my costs for card stock and supplies, I think I can do them for about $5,000 and have them to you in the required timeframe. I think this is the best price you are going to get anywhere.
Peter: We have always been satisfied with your work and reliability. I like your price, but I have a better idea. Send me an invoice for $7,500, which is our budget for this job and when it is paid, give me back $2,000, preferably in cash. I'll make sure you get the job and we will continue our relationship.


Required:
Would it be ethical for Mary to go along with what Peter is proposing? What should she do?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Cornerstones of Managerial Accounting

ISBN: 978-0176721237

3rd Canadian edition

Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman

Question Posted: