Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $29,400 to $27,400. The marketing group estimates that this rebate will increase sales over the next year from 42,000 to 54,100 vehicles. Suppose Honda's profit margin with the rebate is $6,750 per vehicle. Required:
If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea?