Extreme Adventure Gear manufactures and sells 9 different models of adventure gear. Extreme Adventure Gear is contemplating a 4% price cut across all 9 models. It expects the price cut to result in a 10% increase in the number of units sold for models L1201, L1203, L1205, and L1207. The other five models (L1202, L1204, L1206, L1208, and L1209) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Extreme Adventure Gear’s profits and prepare a balance sheet.

Model	Sales Price	Variable Costs	Sales Volume
L1201	$80	$40	1,200
L1202	$90	$45	1,800
L1203	$100	$50	2,400
L1204	$110	$55	3,000
L1205	$120	$60	3,600
L1206	$130	$65	4,200
L1207	$140	$70	4,800
L1208	$150	$75	5,400
L1209	$160	$80	6,000