Module 4: Master Budget and Responsibility Accounting Question 1 (4 marks) Rouse Company is a small environmental-testing firm. In 2017, it performed 12,200 radon tests for $290 each and 16,400 lead tests for $240 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 6% increase in radon-test volume each year in the near future. The company feels that if it lowers its price for lead-testing to $230 per test, it will have to face only a 7% decline in lead-test sales in 2018 Requirements: ) Prepare a 2018 sales budget for Rouse Company assuming that it holds prices at 2017 levels. 2) Prepare a 2018 sales budget for Rouse Company assuming that it lowers the price of a lead test to $230. Should Rouse Company lower the price of a lead test in 2018 if its goal is to maximize sales revenue