In 2017, McGrath & Sons, a small environmental-testing firm, performed 11,000 radon tests for $ 300 each and 15,600 lead tests for $ 220 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 99% next year. However, awareness of radon-related health hazards is expected to result in a 55% 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 44% decline in lead-test sales in 2018.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath holds prices at 2017 levels.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath lowers the price of a lead test to $200. Should McGrath lower the price of a lead test in 2018 if thecompany's goal is to maximize salesrevenue?