Adventure Gear Unlimited manufactures and sells 12 different models of adventure gear. Adventure Gear Unlimited is contemplating a 5% price cut across all 12 models. It expects the price cut to result in a 9% increase in the number of units sold for models RR4401, RR4403, RR4405, and RR4407. The other eight models (RR4402, RR4404, RR4406, RR4408, RR4409, RR4410, RR4411, and RR4412) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Adventure Gear Unlimited’s profits and prepare a profit and loss statement.

Model	Sales Price	Variable Costs	Sales Volume
RR4401	$75	$35	2,000
RR4402	$85	$40	2,500
RR4403	$95	$45	3,000
RR4404	$105	$50	3,500
RR4405	$115	$55	4,000
RR4406	$125	$60	4,500
RR4407	$135	$65	5,000
RR4408	$145	$70	5,500
RR4409	$155	$75	6,000
RR4410	$165	$80	6,500
RR4411	$175	$85	7,000
RR4412	$185	$90	7,500