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In 2017, Peterson & Sons, a small environmental-testing firm, performed 12,200 radon tests for $260 each and 16,600 lead tests for $220 each. Because newer

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In 2017, Peterson & Sons, a small environmental-testing firm, performed 12,200 radon tests for $260 each and 16,600 lead tests for $220 each. 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 lead testing to $200 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 Units sold in 2018 Selling price Total revenues 260 $ 12,688 3,298,880 Radon tests 3,286,800 14,940 220 Lead tests $ 6,585,680 Total Requirement 2. Prepare the sales budget assuming that Peterson lowers the price of a lead test to $200 Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total

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