Mountain Bike Inc. manufactures and sells 8 different models of mountain bikes. Mountain Bike Inc. is contemplating a 4% 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 B201, B203, B205, and B207. The other four models (B202, B204, B206, and B208) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Mountain Bike Inc.’s profits and prepare a balance sheet.

Model	Sales Price	Variable Costs	Sales Volume
B201	$150	$80	1,500
B202	$160	$85	2,000
B203	$170	$90	2,500
B204	$180	$95	1,800
B205	$190	$100	2,200
B206	$200	$105	1,700
B207	$210	$110	2,300
B208	$220	$115	2,400