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Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $29,200 to $27,100. The marketing group estimates that

image text in transcribed Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $29,200 to $27,100. The marketing group estimates that this rebate will increase sales over the next year from 41,800 to 56,600 vehicles. Suppose Honda's profit margin with the rebate is $6,770 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.)

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