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Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from 29,300 to $27,200. The marketing group estimates that

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Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from 29,300 to $27,200. The marketing group estimates that this rebate will increase sales over the next year from 38,600 to 56,300 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.) V look attractive. Offering the rebate Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from 29,300 to $27,200. The marketing group estimates that this rebate will increase sales over the next year from 38,600 to 56,300 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.) V look attractive. Offering the rebate

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