Honda Motor Company is considering offering a $2,600 rebate on its minivan, lowering the vehicle's price from $23,000 to omma 20,400.

The marketing group estimates that this rebate will increase sales over the next year from 35,000 to 50,000 vehicles. Suppose Honda's profit margin with the rebate is

$6,800 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?