Honda Motor Company is considering offering a $2000 rebate on its minivan, lowering the vehicle’s price from $30,600 to $28,600. The marketing group estimates that this rebate will increase sales over the next year from 38,700 to 55,100 vehicles.

Suppose Honda’s profit margin with the rebate is $6180 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?