Business, 29.03.2021 17:40 pharadorvil04
Honda Motor Company is considering offering a 1800 rebate on its minivan, lowering the vehicle's price from to . The marketing group estimates that this rebate will increase sales over the next year from to vehicles. Suppose Honda's profit margin with the rebate is 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.
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