1Honda Motor Company is considering offering a $ 3,000 rebate on its minivan, lowering the vehicle's price from $ 26,000 to $ 23,000.

The marketing group estimates that this rebate will increase sales over the next year from 40,000 to 58,000 vehicles. Suppose Honda's profit margin with the rebate is $ 5,900 per vehicle.

If the change in sales is the only consequence of this decision, what are its benefits and costs? Is it a good idea?