Question
Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $27,000 to $24,900. The marketing group estimates that
Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $27,000 to $24,900. The marketing group estimates that this rebate will increase sales over the next year from 46,000 to 65,000 vehicles. Suppose Honda's profit margin with the rebate is $6,300 per vehicle. If the change in sales is the only consequence of this decision, what are its benefits and costs? Is it a good idea?
The benefits are ________million.(Round to one decimal place.)
The costs are _________million.(Round to one decimal place.)
Is it a good idea?Yes or No?
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