In $2020,$ Rouse & Sons, a small environmental$-$testing firm, performed $11,200$ radon tests for $$280$ each and $15,000$ lead tests for $$190$ each. Because newer homes are being built with lead$-$free

pipes, lead$-$testing volume is expected to decrease by $9\%$ next year. However, awareness of radon$-$related health hazards is expected to result in a $4\%$ increase in radon$-$test volume each year in the near future.

Jim Rouse feels that if he lowers his price for lead testing to $$170$ per test, he will have to face only a $6\%$ decline in lead$-$test sales in $2021.$

Read the requirements.

Requirement $2.$ Prepare the sales budget assuming that Rouse lowers the price of a lead test to $$170.$

Sales Budget

For the Year Ended December $31,2021$

Total revenues

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 $$170.$ Should Rouse lower the price of a lead test in

$2021$ if the company's goal is to maximize sales revenue?