Question
In 2017 2017, Benesch Benesch & Sons, a small environmental-testing firm, performed 11 comma 400 11,400 radon tests for $ 290 $290 each and 15
In 2017 2017, Benesch Benesch & Sons, a small environmental-testing firm, performed 11 comma 400 11,400 radon tests for $ 290 $290 each and 15 comma 000 15,000 lead tests for $ 220 $220 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 13 13% next year. However, awareness of radon-related health hazards is expected to result in a 5 5% increase in radon-test volume each year in the near future. Jim Benesch Benesch feels that if he lowers his price for lead testing to $ 200 $200 per test, he will have to face only a 7 7% decline in lead-test sales in 2018 2018. Read the requirements LOADING... . Requirement 1. Prepare the sales budget for Benesch Benesch & Sons assuming that prices are held at 2017 2017 levels. Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total
1. | Prepare a 20182018 sales budget forBeneschBenesch & Sons assuming thatBeneschBenesch holds prices at20172017 levels. |
2. | Prepare a 20182018 sales budget forBeneschBenesch & Sons assuming thatBeneschBenesch lowers the price of a lead test to$ 200$200. ShouldBeneschBenesch lower the price of a lead test in20182018 if the company's goal is to maximize sales revenue? |
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