Change in sales is the only consequence of decision

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Reference no: EM131573517

Honda Motor Company is considering offering a $ 1 comma 800$1,800 rebate on its? minivan, lowering the? vehicle's price from $ 29 comma 800$29,800 to $ 28 comma 000$28,000. The marketing group estimates that this rebate will increase sales over the next year from 40 comma 60040,600 to 55 comma 40055,400 vehicles. Suppose? Honda's profit margin with the rebate is $ 5 comma 160$5,160 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.

Reference no: EM131573517

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