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Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's price from $20,400 to $27,500. The marketing group estimates that

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Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's price from $20,400 to $27,500. The marketing group estimates that this rebate will increase sales over the next year from 38,900 to 55,400 vehicles. Suppose Honda's profit margin with the rebate is $5,470 per vehicle. If the change in sales is the only consequence of this decision, what are is costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits The cost of the rebate will be smilion (Round to one decimal place.)

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