The basic story, that of a crooked producer who makes money by producing flop shows, was reused by Mel Brooks in The Producers (1967).
David Freedman's sketch "A Day at the Brokers" appeared in "The Ziegfeld Follies of 1936", which opened on Broadway on 1/30/36. It had 115 performances and starred Fanny Brice, Bob Hope and Eve Arden.
The Production Code Administration at first refused to issue an approved certificate for the film because Eddie Rio's pantomime of a lady taking a bath was considered vulgar. They eventually relented.