In 2017, McKnight & Sons, a small environmental-testing firm, performed 11 comma 200 radon tests for $ 250 each and 16 comma 600 lead tests for $ 210 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 15% next year. However, awareness of radon-related health hazards is expected to result in a 7% increase in radon-test volume each year in the near future. Jim McKnight 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-test sales in 2018.

1. Prepare a 2018 sales budget for McKnight & Sons assuming that McKnight holds prices at 2017 levels.

2. Prepare a 2018 sales budget for McKnight & Sons assuming that McKnight lowers the price of a lead test to $ 200. Should McKnight lower the price of a lead test in 2018 if the company's goal is to maximize sales revenue?