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K Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's price from $29,400 to $27.500. The marketing group
K Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's price from $29,400 to $27.500. The marketing group estimates that this rebate will increase sales over the next year from 38,800 to 54,600 vehicles. Suppose Honda's profit margin with the rebate is $6,290 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits The cost of the rebate will be $million. (Round to one decimal place.) The benefit of the rebate will be $ million. (Round to one decimal place.) Is it a good idea? (Select from the drop-down menu.) Offering the rebate look attractive. does not does
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