In 2020 Mcknight & Sons, a small environmental-testing firm, performed 12,400 radon tests for $330 each and 15800 lead tests for $210 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 9% next year. However, awareness of radon-related health hazards is expected to result in a 6% increase in radon-test volume each year in the near future. Jim McKnight feels that if he lowers his price for lead testing to $190 per test, he will have to face only a 4% decline in lead-test sales in 2021.

Prepare a 2021 sales budget for McKnight & Sons assuming that McKnight holds prices at 2020 levels.

Prepare a 2021 sales budget for McKnight & Sons assuming that McKnight lowers the price of a lead test to $190. Should McKnight lower the price of a lead test in 2021 if the company's goal is to maximize sales revenue?

Sales Budget

For the Year Ended December 31, 2021