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Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's...

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Accounting

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Honda Motor Company is considering offering a $1,900 rebate on its minivan, lowering the vehicle's price from $29,300 to $27.400. The marketing group estimates that this rebate will increase sales over the next year from 39,800 to 55,800 vehicles. Suppose Honda's profit margin with the rebate is $5,470 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 The cost of the rebate will be $million. (Round to one decimal place.) CO You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.0 million Czech koruna today in exchange for a year's supply of frozen shrimp Your Thai supplier will provide you with the same supply for 3.0 million Thai baht today if the current competitive market exchange rates are 25.50- koruna per dollar and 41.25 baht per dollar, what is the value of this exchange to you? COD Save The cost of the shrimp from the Thai supplier in dollars is $ (Round to the nearest cent.)

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