ACC $440--$ all $2024$

Test: Midterm$/$Exam #$1$

Question $7$ of $25$

This test: $25$ point$($s$)$ possible

This question: $1$ point$($s$)$ possible

Question list

Question $1$

Question $2$

Question $3$

Question $4$

Question $5$

Question $6$

Question $7$

Question $8$

Question $9$

Question $10$

In $2020,$ Rouse & Sons, a small environmental$-$testing firm, performed $10,800$ radon tests for $$310$ each and $15,400$ lead tests for $$220$ each. Because newer homes are being built with lead$-$free pipes, lead$-$testing volume is expected to decrease by $13\%$ 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 Rouse feels that if he lowers his price for lead testing to $$210$ per test, he will have to face only a $5\%$ decline in lead$-$test sales in $2021.$

Read the requirements.

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

Sales Budget

For the Year Ended December $31,2021$

Requirements

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

Prepare a $2021$ sales budget for Rouse & Sons assuming that Rouse lowers the price of a lead test to $$210.$ Should Rouse lower the price of a lead test in $2021$ if the company's goal is to maximize sales revenue?

$$

$$

$\backslash$table$[[,$For the Year Ended December,Total revenues$],[,],[$Radon tests,,$],[$Lead tests,,$],[$Total$,,]]$

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

Nert