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Honda Motor Company is considering offering a $1,100 rebate on its minivan, lowering the vehicle's price from $29,000 to $27.900 The marketing group estimates
Honda Motor Company is considering offering a $1,100 rebate on its minivan, lowering the vehicle's price from $29,000 to $27.900 The marketing group estimates that this rebale wit increase sales over the next year from 34,000 to 44,000 vehicles Suppose Honda's profit margin with the rebate is $5 600 per vehicle. If the change in sales is the only consequence of this decision what are its benefits and costs? good idea? The benefits are $milion (Round to one decimal place)
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