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Honda Motor Company is considering offering a $ 2 comma 000 rebate on its minivan, lowering the vehicle's price from $ 29 comma 300 to

Honda Motor Company is considering offering a

$ 2 comma 000

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

$ 29 comma 300

to

$ 27 comma 300

.

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

41 comma 500

to

56 comma 500

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

$ 5 comma 820

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

$nothing

million. (Round to one decimal place.)

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