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In 2017 Hart & Sons, a small environmental testing firm, performed 11.400 radon tests for $260 each and 15,000 lead tests for $210 each Because
In 2017 Hart & Sons, a small environmental testing firm, performed 11.400 radon tests for $260 each and 15,000 lead tests for $210 each Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 12% next year. However, awareness of radon-related health hazards is expected to result in a 5% increase in radon test volume each year in the near future, Jim Hart feels that if he lowers his price for lead testing to $200 per test, he will have to face only a 4% decline in lead-tost sales in 2018 Read the requirements 1. Prepare a 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels 2. Prepare a 2018 sales budget for Hart & Sons assuming that Hart lowers the price of a lead test to $200. Should Hart lower the price of a lead test in 2018 if the company's goal is to maximize sales revenue? Requirement 1. Prepare the sales budget for Hart & Sons assuming that prices are held at 2017 levels. Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total Total Requirement 2. Prepare the sales budget assuming that Benesch lowers the price of a lead testt
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