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Honda Motor Company is considering offering a $2,200 rebate on itsminivan, lowering thevehicle's price from $29,900 to $27,700. The marketing group estimates that this rebate
Honda Motor Company is considering offering a $2,200 rebate on itsminivan, lowering thevehicle's price from $29,900 to $27,700. The marketing group estimates that this rebate will increase sales over the next year from 38,300 to 56,200 vehicles. SupposeHonda's profit margin with the rebate is $5,690 per vehicle. If the change in sales is the only consequence of thisdecision, what are its costs andbenefits?
The loss per vehicle is $ (round to nearest dolal
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