In 2018, Keuchel & Sons, a small environmental-testing firm, performed 11,200 radon tests for $280 each and 15,200 load tests for $180 each. Because nower homes are being built with lead-free pipos, lead-testing volume is expected to decrease by 14% next year. However, awareness of radon-related health hazards is expected to result in a 12% increase in radon-test volume each year in the near future, Jim Keuchel feels that if he lowers his price for load testing to $170 por test, ho will have to face only a 6% decline in load-last sales in 2019. Required 1. Prepare a 2019 sales budget for Keuchel & Sons assuming that Keuchel holds prices at 2018 levels 2. Prepare a 2019 sales budget for Keuchel & Sons assuming that Keuchellowers the price of a load test to $170. Should Kouchel lower the price of a lead test in 2019 if its goal is to maximize sales revenue? Requirement 1. Prepare a 2019 sales budget for Keuchel & Sons assuming that Kouchel holds prices at 2018 levels. Sales Budget For the Year Ended December 31, 2019 Total revenues Radon tests Load tests Grand Total Requirement 2. Propare a 2019 salos budget for Keuchel & Sons assuming that Keuchellowers the price of a lead lost to $170. Should Kouche lower the price of homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 14% next year. However, awareness of radon-related health hazards is expected to result in a 12% increase in radon-test volume each year in the near future Jim Keuchel feels that if he lowers his price for lead testing to S170 per test, he will have to face only a 6% decline in lead lost sales in 2019 Required 1. Prepare a 2019 sales budget for Keuchel & Sons assuming that Kouchbol holds prices at 2018 levels. 2. Propare a 2019 sales budget for Keuchet & Sons assuring that Keuchel lowers the price of a lead test to $170. Should Keuchel fower the price of a lead test in 2019 if its goal is to maximize sales revenue? Requirement 2. Prepare a 2019 sales budget for Keuchel & Sons assuming that Kouchal lowers tho price of a head tost to $170. Should Kouchat lower the price of a load test in 2019 if its goal is to maximize salos revenue? Sales Budget For the Year Ended December 31, 2019 Total reventios Radon tests Load tests Grand Total In 2018, Kouchel & Sons, a small environmental testing firm, performed 11,200 radon tests for $280 each and 15,200 load tests for $180 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 14% next year. However, awareness of radon-related health hazards expected to result in a 12% increase in radon-test volume each year in the near future, Jim Kouchol feels that if he lowers his price for lead testing to $170 per te will have to face only a 6% declino in lead-test sales in 2019, Required 1. Propare a 2019 sales budget for Keuchel & Sons assuming that Keuchel holds prices at 2018 levels. 2. Prepare a 2019 sales budget for Kouchal & Sons assuming that Keuchel lowers the price of a lead test to $170. Should Kouchol lower the price of a load tes 2019 if its goal is to maximize sales revenue? wuyur For the Year Ended December 31, 2019 Total revenues Radon tests Load tosts Grand Total Should Kouchellower the price of a load tost in 2019 if its goal is to maximize sales revenue? Keuchel lower the price of a load tot in 2019 bocause the total budgeted sales revenues in higher when the tolling price
