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Honda Motor Company is considering offering a $2,400 rebate on its minivan, lowering the vehicle's price from $25,000 to $22,600. The marketing group estimates that
Honda Motor Company is considering offering a $2,400 rebate on its minivan, lowering the vehicle's price from $25,000 to $22,600. The marketing group estimates that this rebate will increase sales over the next year from 39,000 to 54,000 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? Also the total benefits are $------- million? (round to one decimal space )
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