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Honda Motor Company is considering offering a $2,700 rebate on its minivan, lowering the vehicle's price from $23,000 to $20,300. The marketing group estimates that
Honda Motor Company is considering offering a $2,700 rebate on its minivan, lowering the vehicle's price from $23,000 to $20,300. The marketing group estimates that this rebate will increase sales over the next year from 43,000 to 55,000 vehicles. Suppose Honda's profit margin with the rebate is $6,700 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? e The benefits are $ million. (Round to one decimal place.) The costs are $ million. (Round to one decimal place.) Is it a good idea? (Select from the drop-down menu.)
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