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Assume you are the management accountant for the Foleo Group and have been called to a meeting with James and Tracey, the CFO, regarding the assessment of a special offer for the premium model of SliFones that James has negotiated with Vodafone - the offer is for 6,000 phones at the discounted price of $760 each. You have been asked to work with Allan Raymond, the Foleo Fones Business Unit General Manager, and look into the current manufacturing practices, with the view to determining whether Foleo Fones should proceed with this deal.
As a result of your investigations and discussions with Allan, you have discovered the following:
Problem 1: Draw a diagram that illustrates the relationships within Foleo Fones & the CURRENT situation regarding the transfer of goods for the special offer to Vodafone
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