Hiking Pro manufactures and sells 8 different models of hiking gear. Hiking Pro is contemplating a 5% price cut across all 8 models. It expects the price cut to result in a 10% increase in the number of units sold for models HH3401, HH3403, HH3405, and HH3407. The other four models (HH3402, HH3404, HH3406, and HH3408) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Hiking Pro’s profits and prepare a balance sheet.

Model	Sales Price	Variable Costs	Sales Volume
HH3401	$85	$40	2,000
HH3402	$95	$45	2,500
HH3403	$105	$50	3,000
HH3404	$115	$55	3,500
HH3405	$125	$60	4,000
HH3406	$135	$65	4,500
HH3407	$145	$70	5,000
HH3408	$155	$75	5,500