Business
Business, 23.09.2019 21:30, daevinepetersopa86on

Honda motor company is considering offering a $ 1 comma 900 rebate on its minivan, lowering the vehicle's price from $ 29 comma 700 to $ 27 comma 800. the marketing group estimates that this rebate will increase sales over the next year from 39 comma 900 to 55 comma 800 vehicles. suppose honda's profit margin with the rebate is $ 6 comma 730 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.

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