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    New incentive program and profit

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    If Honda just announced a new incentive program that provides either $2,500 cash back or zero percent financing for up to five years on Honda LX sedans, how would the local dealership's bottom line will be impacted by this offer in the immediate future? In the longer term?

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    Solution Preview

    In the immediate future the profit of local dealers will be adversely impacted by the scheme of $2500 cash back or zero percent ...

    Solution Summary

    The solution discusses the impact of new incentive program on profit.