Is this decision to give the rebate wise one

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Reference no: EM131047936

Heavy Duty Company, a manufactured 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 $180. Based on the information, is this decision to give the rebate a wise one?

Reference no: EM131047936

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Is this decision to give the rebate wise one : Heavy Duty Company, a manufactured 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. The profit margin for Heavy Duty before the rebate is $180. Based on the information, is..

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