Adventure Gear Co. manufactures and sells 6 different models of adventure gear. Adventure Gear is contemplating a 4% price cut for all models. It expects the price cut to result in a 7% increase in units sold for models J1001, J1003, and J1005. The other three models (J1002, J1004, and J1006) are expected to see a 5% increase in sales volume. Assess the impact of the price cut on Adventure Gear’s profits and prepare the equity statement.

Model	Sales Price	Variable Costs	Sales Volume
J1001	$125	$60	2,000
J1002	$135	$65	3,000
J1003	$145	$70	4,000
J1004	$155	$75	2,500
J1005	$165	$80	2,200
J1006	$175	$85	1,800