$2020,$ McGrath & Sons, a small environmental$-$testing firm, performed $11,800$ radon tests for $$320$ each and $16,000$ lead tests for $$210$ each. Because newer homes are being built with lead$-$free

ipes, 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

ne near future. Jim McGrath 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 $2021.$

Read the requirements.

Requirement $1.$ Prepare the sales budget for McGrath & Sons assuming that prices are held at $2020$ levels.

Sales Budget

For the Year Ended December $31,2021$

Total revenues

Radon tests

ead tests

$$otal

Requirement $2.$ Prepare the sales budget assuming that McGrath lowers the price of a lead test to $$200.$

Sales Budget

For the Year Ended December $31,2021$

Total revenues

Radon tests

ead tests

$]$

$$otal

$$

$^$cGrath

lower the price of a lead test in $2021$ if its goal is to maximize sales revenue. In $2020,$ McGrath & Sons, a small environmental$-$testing firm, performed $11,800$ radon tests for $$320$ each and $16,000$ lead tests for $$210$ 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 McGrath 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 $2021.$

Read the requirements. In $2020,$ McGrath & Sons, a small environmental$-$testing firm, performed $11,800$ radon tests for $$320$ each and $16,000$ lead tests for $$210$ 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 McGrath 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 $2021.$

Read the requirements.

Requirement $1.$ Prepare the sales budget for McGrath & Sons assuming that prices are held at $2020$ levels.

Sales Budget

For the Year Ended December $31,2021$

Total revenues

Radon tests

Lead tests

Total

Requirement $2.$ Prepare the sales budget assuming that McGrath lowers the price of a lead test to $$200.$

Sales Budget

For the Year Ended December $31,2021$

Total revenues

McGrath

lower the price of a lead test in $2021$ if its goal is to maximize sales revenue.