Gold nest company of guandong, china, is a family-owned enterprise that makes birdcages for the south china market. the company sells its birdcages through an extensive network of street vendors who receive commissions on their sales. all of the company's transactions with customers, employees, and suppliers are conducted in cash; there is no credit. the company uses a job-order costing system in which overhead is applied to jobs on the basis of direct labor cost. its predetermined overhead rate is based on a cost formula that estimated $115,000 of manufacturing overhead for an estimated activity level of $50,000 direct labor dollars. at the beginning of the year, the inventory balances were as follows:

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?