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Author Question: Heavy Duty Inc., a manufacturer of power tools, decides to offer a rebate of $100 on its 16-inch ... (Read 56 times)

rl

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on: Jul 9, 2019
Heavy Duty Inc., a manufacturer of power tools, decides to offer a rebate of $100 on its 16-inch mid-range chain saw, which currently has a retail price $470. Heavy Duty's marketers estimate that, as a result of the rebate, sales of this model will increase from 50,000 to 80,000 units next year. The profit margin for Heavy Duty before the rebate is $150. Based on the given information, is the decision to give the rebate a wise one?
◦ No, since costs are $3.5 million more than benefits.
◦ Yes, since the benefits are $0.2 million more than the costs.
◦ Yes, since the benefits are $1.5 million more than the costs.
◦ No, since costs are $5.0 million more than benefits.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by rl on Jul 9, 2019

mathjasmine

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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rl

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Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

connor417

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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