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In 2017, McKnight lead-free pipes, lead-testing volume is expected t volume each year in the near future. Jim McKnight feels that if he lowers his

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In 2017, McKnight lead-free pipes, lead-testing volume is expected t volume each year in the near future. Jim McKnight feels that if he lowers his price for lead testing to $180 per test, he will have to face only a 5% decline in lead-test sales in 2018. Read the requirements. Sons, a small environmental-testing firm, performed 10,800 radon tests for $280 each and 15,000 lead tests for $200 each. Because newer homes are being built with radon-test decrease by 13 % next year . However, awareness of radon-related health hazards is expected to result in a 4% increase Requirement 1. Prepare the sales budget for McKnight & Sons assuming that prices are held at 2017 levels. Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total Requirement 2. Prepare the sales budget assuming that McKnight lowers the price of a lead test to $180. Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total McKnight lower the price of a lead test in 2018 if its goal is to maximize sales revenue

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