Chapter $6$ Assignment

$6-17$ Sales budget, service setting. $($LO $2)$ In $2021,$ McGrath & Sons, a small environmental$-$testing firm, performed $11,000$ radon tests for $$250$ each and $15,200$ lead tests for $$200$ each. Because newer homes are being built with lead$-$free pipes, leadtesting volume is expected to decrease by $10\%$ next year. However, awareness of radon$-$related health hazards is expected to result in a $10\%$ increase in radon$-$test volume each year in the near future. Jim McGrath feels that if he lowers his price for lead testing to $$190$ per test, he will have to face only a $5\%$ decline in lead$-$test sales in $2022.$

Required

Prepare a $2022$ sales budget for McGrath & Sons assuming that McGrath holds prices at $2021$ levels.

Prepare a $2022$ sales budget for McGrath & Sons assuming that McGrath lowers the price of a lead test to $$190.$ Should McGrath lower the price of a lead test in $2022$ if its goal is to maximize sales revenue?