genis battery company 5-45 Incremental revenues and costs, special order Genis Battery Company is ...
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genis battery company Incremental revenues and costs, special order Genis Battery Company is considering accepting a special order for batteries that it received from a discount retail store. The order specified a price of $ per unit, which reflects a discount of $ per unit relative to the company's regular price of $ per unit. Genis's accounting department has prepared the following analysis to show the cost savings resulting from additional sales: No additional fixed costs will be incurred for this order because the company has surplus capacity. Because the average cost per unit will be reduced from $ to $ Genis's president believes that a reduction in the price to $ is justified for this order. Required a Should the order for the units at a price of $ be accepted? What will be the impact on Genis's operating income? b Is the accounting department's analysis the best way to evaluate this decision? If not, what alternative method can you suggest? c What other considerations are important in this case? Why? 
genis battery company Incremental revenues and costs, special order Genis Battery Company is
considering accepting a special order for batteries that it received from
a discount retail store. The order specified a price of $ per unit, which
reflects a discount of $ per unit relative to the company's regular price of
$ per unit. Genis's accounting department has prepared the following
analysis to show the cost savings resulting from additional sales:
No additional fixed costs will be incurred for this order because the
company has surplus capacity. Because the average cost per unit will be
reduced from $ to $ Genis's president believes that a reduction in the
price to $ is justified for this order.
Required
a Should the order for the units at a price of $ be accepted? What will be the impact on
Genis's operating income?
b Is the accounting department's analysis the best way to evaluate this decision? If not, what
alternative method can you suggest?
c What other considerations are important in this case? Why?
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