Honda Motor Company is considering offering a

$1,900

rebate on its minivan, lowering the vehicle's price from

$30,500

to

$28,600.

The marketing group estimates that this rebate will increase sales over the next year from

40,400

to

55,700

vehicles. Suppose Honda's profit margin with the rebate is

$5,250

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.