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Honda Motor Company is considering offering a $ 1 comma 7 0 0 $ 1 , 7 0 0 rebate on its minivan, lowering the

Honda Motor Company is considering offering a $ 1 comma 700$1,700 rebate on its minivan, lowering the vehicle's price from $ 35 comma 000$35,000 to $ 33 comma 300$33,300. The marketing group estimates that this rebate will increase sales over the next year from 50 comma 00050,000 to 62 comma 00062,000 vehicles. Suppose Honda's profit margin with the rebate is $ 6 comma 000$6,000 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?

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