In 2017, Cole & Sons, a small environmental-testing firm, performed 12,200 radon tests for $300 each and 16,000 lead tests for $230 each. Because newer homes are being built with lead-free pipes,...

Extracted text: In 2017, Cole & Sons, a small environmental-testing firm, performed 12,200 radon tests for $300 each and 16,000 lead tests for $230 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 12% next year. However, awareness of radon-related health hazards is expected to result in a 5% increase in radon-test volume each year in the near future. Jim Cole feels that if he lowers his price for lead testing to $210 per test, he will have to face only a 4% decline in lead-test sales in 2018. Read the requirements Requirement 1. Prepare the sales budget for Cole & Sons assuming that prices are held at 2017 levels. Sales Budget For the Year Ended December 31, 2018 Requirements Selling price Units sold in 2018 Total revenues Radon tests 300 12810 3843000 230 3238400 1. Prepare a 2018 sales budget for Cole & Sons assuming that Cole holds prices at 2017 levels. Lead tests 14080 7080400 2. Prepare a 2018 sales budget for Cole & Sons assuming that Cole lowers the price of a lead test to $210. Should Cole lower the price of a lead test in 2018 if the company's goal is to maximize sales revenue? Total Print Done