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What are its costs and benefits

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Question - Honda Motor Company is considering offering a $2,200 rebate on its minivan, lowering the vehicle's price from $29,900 to $27,700. The marketing group estimates that this rebate will increase sales over the next year from 38,300 to 56,200 vehicles. Suppose Honda's profit margin with the rebate is $5,690 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits?

Reference no: EM132638441

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