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Change in sales is the only consequence of decision

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Honda Motor Company is considering offering a $1600 rebate on its minivan, lowering the vehicle's price from $22,000 to $20,400. The marketing group estimates that this rebate will increase sales over the next year from 31,000 to 48,000 vehicles. Suppose Honda's profit margin with the rebate is $5500 per vehicle. If the change in sales is the only consequence of the decision, what are its benefits and cost? Is it a good idea?

Reference no: EM131094121

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