Honda Motor Company is considering offering a $ 2 comma 200 rebate on its minivan, lowering the vehicle's price from $ 30 comma 100 to $ 27 comma 900. The marketing group estimates that this rebate will increase sales over the next year from 38 comma 700 to 55 comma 300 vehicles. Suppose Honda's profit margin with the rebate is $ 6 comma 780 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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Part 1
The cost of the rebate will be $
enter your response here million. (Round to one decimal place.)