Question: In 2017 2017, Benesch Benesch & Sons, a small environmental-testing firm, performed 11 comma 400 11,400 radon tests for $ 290 $290 each and 15

In 2017 2017, Benesch Benesch & Sons, a small environmental-testing firm, performed 11 comma 400 11,400 radon tests for $ 290 $290 each and 15 comma 000 15,000 lead tests for $ 220 $220 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 13 13% next year. However, awareness of radon-related health hazards is expected to result in a 5 5% increase in radon-test volume each year in the near future. Jim Benesch Benesch feels that if he lowers his price for lead testing to $ 200 $200 per test, he will have to face only a 7 7% decline in lead-test sales in 2018 2018. Read the requirements LOADING... . Requirement 1. Prepare the sales budget for Benesch Benesch & Sons assuming that prices are held at 2017 2017 levels. Sales Budget For the Year Ended December 31, 2018 Total revenues Radon tests Lead tests Total

1.

Prepare a

20182018

sales budget for

BeneschBenesch

& Sons assuming that

BeneschBenesch

holds prices at

20172017

levels.

2.

Prepare a

20182018

sales budget for

BeneschBenesch

& Sons assuming that

BeneschBenesch

lowers the price of a lead test to

$ 200$200.

Should

BeneschBenesch

lower the price of a lead test in

20182018

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!