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Find profit margin for heavy duty

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Reference no: EM132818302

Heavy Duty Company, a manufacturer of power tools, decides to offer a rebate of $130 on its 16-inch mid-range chain saw, which currently has a retail price $490. Heavy Duty's marketers estimate that, as a result of the rebate, sales of this model will increase from 60,000 to 80,000 units next year. The profit margin for Heavy Duty before the rebate is $280. Based on the given information, is the decision to give the rebate a wise one?

Reference no: EM132818302

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