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Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $29,800 to $27,800. The marketing group estimates that

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Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $29,800 to $27,800. The marketing group estimates that this rebate will increase sales over the next year from 38,900 to 53,800 vehicles. Suppose Honda's profit margin with the rebate is $6,560 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 does not

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