A company accepts incremental business at a special price that exceeds the variable cost. What other issues must the company consider in deciding whether to accept the business?
 

A business should only accept business at a special price if the lower price will not contaminate the regular pricing for other customers or induce other customers to buy at the special price. In addition, the business must be careful not to violate the Robinson-Patman Act, which prohibits uncompetitive price differences across different markets for the same product. Lastly, the company may only offer the special price once for an incremental order. Thus, the business must consider the longer-term ramifications of offering discount business to a customer that may wish to order in the future.