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. SupposeHonda'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?

Answer rating: 100% (QA)

Answer Working The proposed idea will be considered as good only if the benefits from the idea will ... View the full answer