n 2017, McGrath & Sons, a small environmental-testing firm, performed 10 comma 800 radon tests for $ 280 each and 15 comma 600 lead tests for $ 180 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 4% increase in radon-test volume each year in the near future. Jim McGrath feels that if he lowers his price for lead testing to $ 170 per test, he will have to face only a 7% decline in lead-test sales in 2018.

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

2. Prepare a 2018 sales budget for McGrath assuming McGrath lowers the price of a lead test to $170. Should McGrath lower the price of a lead test in 2018 if the company's goal is to maximize sales revenue?