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In 2017, Peterson & Sons, a small environmental testing firm, performed 12,000 radon tests for $250 each and 16,000 lead tests for $230 ench Because

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In 2017, Peterson & Sons, a small environmental testing firm, performed 12,000 radon tests for $250 each and 16,000 lead tests for $230 ench Because newer homes are being built with lead-free pipes, lead testing volume is expected to decrease by 10% next year. However, awareness of radon-related health hazards is expected to result in a 4% increase in radon-test volume each year in the near future, Jim Peterson feels that if he lowers his price for load testing to $210 per test, he will have to face only a 6% decline in lead-test sales in 2018 Read the requirements Sales Budget For the Year Ended December 31, 2018 Selling price Units sold in 2018 Total revenues Radon tests 250 12,480 $ 3,120.000 230 Lead tests 14,400 3.312,000 $ 6,432,000 Total Requirement 2. Prepare the sales budget assuming that Peterson lowers the price of a lead test to $210. Sales Budget For the Year Ended December 31, 2018 Selling price Units sold in 2018 Total revenues Radon tests 250 12,480$ 3.120.000 Lead tests 210 15,040 3,158,400 Total 6.278.400 Peterson should not lower the price of a lead test in 2018 if its goal is to maximize sales revenue

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