Maintain your record sales You are the owner of a local Saturn dealership that competes against two

Maintain your record sales

You are the owner of a local Saturn dealership that competes
against two other firms (Ford and Chrysler dealerships) Unlike other
dealerships in the area, you take pride in your â??No Hassles, No Haggleâ? sales policy Last year, your dealership earned record
profits of $15 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 Saturn automobiles is -45
In each of the last five years, your dealership has sold more midsized
automobiles than any other Saturn dealership in the nation This entitled your
dealership to an additional 30 percent rebate off the manufacturer´s suggested
retail price (MSRP) in each year Taking this rebate 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?