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Homework: Ch 3 HW Assignment - FIN301 FALL 2021 Question 1, P 3-1 (book/... Part 2 of 3 HW Score: 0%, 0 of 25 points

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Homework: Ch 3 HW Assignment - FIN301 FALL 2021 Question 1, P 3-1 (book/... Part 2 of 3 HW Score: 0%, 0 of 25 points X Points: 0 of 1 Save Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $30,000 to $28,000. The marketing group estimates that this rebate will increase sales over the next year from 40,000 to 55,000 vehicles. Suppose Honda's profit margin with the rebate is $6,000 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ 80.0 million. (Round to one decimal place.) The benefit of the rebate will be $ 330 million. (Round to one decimal place.)

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