t$/$PlayerHomework$.$aspx?homeworkId$=672778222$&questionld$=1$&flushed$=$false&cld$=7814061$erwin$...$

$2024$

muskaan bedi $06/02/2411$:$04$ PM

Question $1,$ Problem $3-1$

HW Score: $52\mathrm{.}08\%,6\mathrm{.}25$ of $12$

Part $1$ of $3$ points

Points: $0$ of $1$

Honda Motor Company is considering offering a $$1,800$ rebate on its minivan, lowering the vehicle's price from $$29,800$ to $$28,000.$ The marketing group estimates that this rebate will increase sales over the next year from $41,600$ to $54,900$ vehicles. Suppose Honda's profit margin with the rebate is $$6,530$ 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.$)$