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Honda Motor Company is considering offering a $ 2 , 2 0 0 rebate on its minivan, lowering the vehicle's price from $ 2 9

Honda Motor Company is considering offering a $2,200 rebate on its minivan, lowering the vehicle's price from $29,200 to $27,000. The marketing group estimates that this rebate will increase sales over the next year from 39,100 to 53,800 vehicles. Suppose Honda's profit margin with the rebate is $6,850 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.
The cost of the rebate will be $ million. (Round to one decimal place.)
The benefit of the rebate will be $ million. (Round to one decimal place.)
Is it a good idea? (Select from the drop-down menu.)
Offering the rebate look attractive.
does not
does
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