A state government in south-south region of Nigeria is currently negotiating to place an order of 20,000 pens on a special order for N8,000,000. The government intends to use it for HIVAIDS awareness campaign in the state capital and has requested for these inscriptions to be imprinted one each of the pens "Be aware HIVAIDS kills ' and 'donated by State Government'. These inscriptions will involve a further cost of N100. Although Fountain Pens Ltd has been producing below its full capacity, the General Manager , Mr Coker is very reluctant to grant the order despite pressure from the sales director. He argued that selling below its normal sales price of N650 will be risky for the business, quoting the statement that appears at the beginning of the case. He adds that accepting the order might generate a price war with other competitors and other established customers may also request for such deals. The sales director although very disappointed with this decision contemplates on any further steps to be taken. Questions