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Heavy Duty Inc., a manufacturer of power tools, decides to offer a rebate of $115 on its 16 -inch mid-range chain saw, which currently has
Heavy Duty Inc., a manufacturer of power tools, decides to offer a rebate of $115 on its 16 -inch mid-range chain saw, which currently has a retail price $460. Heavy Duty's marketers estimate that, as a result of the rebate, sales of this model will increase from 60000 to 80000 units next year. The profit margin for Heavy Duty before the rebate is $190. Based on the given information, is the decision to give the rebate a wise one? A. Yes, since the benefits are $5,900,000 more than the costs. B. No, since costs are $5,400,000 more than benefits. C. No, since costs are $6,400,000 more than benefits. D. Yes, since the benefits are $2,700,000 more than the costs
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