Dynamic Fitness manufactures and sells 10 different models of fitness equipment. Dynamic Fitness is contemplating a 6% price cut for all models. It expects the price cut to result in an 8% increase in units sold for models M1301, M1303, and M1305. The other seven models (M1302, M1304, M1306, M1307, M1308, M1309, and M1310) are expected to see a 5% increase in sales volume. Assess the impact of the price cut on Dynamic Fitness’s profits and prepare the equity statement.
•Model: M1301
oSales Price: $95
oVariable Costs: $45
oSales Volume: 2,500
•Model: M1302
oSales Price: $105
oVariable Costs: $50
oSales Volume: 3,000
•Model: M1303
oSales Price: $115
oVariable Costs: $55
oSales Volume: 3,500
•Model: M1304
oSales Price: $125
oVariable Costs: $60
oSales Volume: 4,000
•Model: M1305
oSales Price: $135
oVariable Costs: $65
oSales Volume: 4,500
•Model: M1306
oSales Price: $145
oVariable Costs: $70
oSales Volume: 5,000
•Model: M1307
oSales Price: $155
oVariable Costs: $75
oSales Volume: 5,500
•Model: M1308
oSales Price: $165
oVariable Costs: $80
oSales Volume: 6,000
•Model: M1309
oSales Price: $175
oVariable Costs: $85
oSales Volume: 6,500
•Model: M1310
oSales Price: $185
oVariable Costs: $90
oSales Volume: 7,000