Change in sales is the only consequence of this? decision

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Reference no: EM131573524

Honda Motor Company is considering offering a $ 1 comma 900$1,900 rebate on its? minivan, lowering the? vehicle's price from $ 29 comma 100$29,100 to $ 27 comma 200$27,200. The marketing group estimates that this rebate will increase sales over the next year from 39 comma 20039,200 to 54 comma 10054,100 vehicles. Suppose? Honda's profit margin with the rebate is $ 5 comma 150$5,150 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: EM131573524

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