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Global Sports Equipment manufactures and sells 10 different models of sports gear. Global is contemplating a 6% price cut across the board for all 10

Global Sports Equipment manufactures and sells 10 different models of sports gear. Global is contemplating a 6% price cut across the board for all 10 models. It expects the price cut to result in a 9% increase in the number of units sold for models A101, A103, A105, and A107. Global expects the other six models (A102, A104, A106, A108, A109, and A110) to experience a 5% increase in the number of units sold. Assess the impact of the price cut on Global’s profits.

Model

Sales Price

Variable Costs

Sales Volume

A101

$55

$25

2,000

A102

$65

$30

3,500

A103

$75

$35

4,000

A104

$85

$40

5,500

A105

$95

$45

3,000

A106

$105

$50

2,500

A107

$115

$55

2,200

A108

$125

$60

1,800

A109

$135

$65

1,500

A110

$145

$70

1,200

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