Honda motor company is considering offering $2,000 rebate on its minivan, lowering the vehicles price from $30,000 to $28,000

Business Jan 15, 2021

Honda motor company is considering offering $2,000 rebate on its minivan, lowering the vehicles price from $30,000 to $28,000. the marketing group estimates that this rebate will increase sales over the next year from 40,000 to 55,000 vehicles. Suppose Hondas profit margin with the rebate is $6,000 per vehicle. If the change in sales is the only consequence of this decision, what are the benefits and cost? Is it a good Idea? The Benefits are $___________million.