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Honda Motor Company is considering offering a 2 , 3 0 0 rebate on its minivan, lowering the vehicle's price from 3 8 , 0

Honda Motor Company is considering offering a 2,300 rebate on its minivan, lowering the vehicle's price from 38,000 to 35,700. The marketing group estimates that this rebate will increase sales over the next year from 48,000 to 63,000 vehicles. Suppose Honda's profit margin with the rebate is 6,600 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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