Answer
Total Sales Revenue = \$3,538,000 (Radon) + \$2,733,600 (Lead) = \$6,271,600
Work Step by Step
Radon Tests: 12,200 tests * \$290 = \$3,538,000
Lead Tests: (16,400 tests - 7% decrease) $\times$ \$230 = \$2,733,600
If the company's goal is to maximize sales revenue, it should lower the price of a lead test to \$230. This strategy results in a slightly lower total sales revenue (\$6,271,600) compared to maintaining 2014 prices (\$7,474,000). However, it allows the company to capture more sales volume for lead tests, compensating for the lower unit price.
