Barth company reports the following year-end account balances at december 31, 2011. prepare the 2011 income statement and the balance sheet as of december 31, 2011.

accounts payable $ 32,000 inventory $ 72,000
accounts receivable 60,000 land 160,000
bonds payable, long-term 400,000 goodwill 16,000
buildings 302,000 retained earnings 120,000
cash 96,000 sales revenue 800,000
common stock 300,000 supplies inventory 6,000
cost of goods sold 360,000 supplies expense 12,000
equipment 140,000 wages expense 80,000

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?