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Homework: HW2 Save Score: 0 of 1 pt 1 of 2 (0 complete) HW Score: 0%, 0 of 2 pts XP 3-1 (similar to) Question
Homework: HW2 Save Score: 0 of 1 pt 1 of 2 (0 complete) HW Score: 0%, 0 of 2 pts XP 3-1 (similar to) Question Help Honda Motor Company is considering offering a $1,800 rebate on its minivan, lowering the vehicle's price from $30,100 to $28,300. The marketing group estimates that this rebate will increase sales over the next year from 41,500 to 55,200 vehicles. Suppose Honda's profit margin with the rebate is $6,230 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 s million. (Round to one decimal place.)
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