Cabin Telecom (CT), an electronics retailer, has 3,000 units of Apple iPhone 8 as part of their inventory. The units were purchased from Apple at an average cost of $600 (i.e. some were purchased below and above $600), and the entry to record the purchase of these phones has already been recorded by the accounting staff. Due to the launch of the new iPhone 12, the market price of the iPhone 8 is expected to decrease from $750 to about $629. CT normally pays a commission of 4% of the sales price to their sales people for every sale made. Other selling costs of the handset are estimated to be $10 per unit. Required: What impact, if any, would the above information have on the financial statements of Cabin Telecom? (4 marks)