CPTInc. is a local manufacturer of conveyor systems. Last year,CPTsold over $2 million worth of conveyor systems that netted the company $100,000 in profits. Raw materials and labor areCPT's biggest expenses. Spending on structural steel alone amounted to over $500,000, or 25 percent of total sales. In an effort to reduce costs,CPTnow uses an online procurement procedure that is best described as a first-price, sealed-bid auction. The bidders in these auctions utilize the steel for a wide variety of purposes, ranging from art to skyscrapers. This suggests that bidders value the steel independently, although it is perceived that bidder valuations are evenly distributed between $5,000 and $27,000.

You are the purchasing manager atCPTand are bidding on three tons of six-inch hot-rolled channel steel against 4 other bidders. Your company values the three tons of channel steel at $16,000. What is your optimal bid?

Instruction: Enter your response rounded to the nearest penny (two decimal places).

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