Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $29,700 to $27,700. The marketing group estimates that this rebate will increase sales over the next year from 40,400 to 54,700 vehicles. Suppose Honda's profit margin with the rebate is $5,240 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.)

Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $29,700 to $27,700. The marketing group estimates that this rebate will increase sales over the next year from 40,400 to 54,700 vehicles. Suppose Honda's profit margin with the rebate is $5,240 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.)