Your firm wants to launch a promotion on a particular model of its outdoor dining chair. The dining chair currently has a retail price of $600. And the profit before the rebate is $345 per chair. The firm is considering to offer a rebate of $75, and expects that as a result of the rebate, sales of this chair will increase from 15,000 to 18,000 units next year.
Based on the given information, does it make sense for your firm to offer the rebate?
Group of answer choices
No, since costs are $300,000 more than benefits.
No, since costs are $315,000 more than benefits.
Yes, since the benefits are $4,860,000 more than the costs.
The answer cannot be determined based on the information given.
Yes, since the benefits are $1,035,000 more than the costs.