You're the owner of local Honda dealership. Unlike other dealerships in area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $2 million. In your market, you compete against two other dealers, and market-level price elasticity of demand for midsized Honda automobiles is -1.8. In each of last five years, your dealership has sold more midsized automobiles than any other Honda dealership in nation. This entitled your dealership to additional 35 percent off the manufacturer's suggested retail price (MSRP) in each and every year. Taking this in account, your marginal cost of midsized automobile is $13,000.
What price should you charge for midsized automobile if you expect to maintain your record sales?