Prime Fitness manufactures and sells 12 different models of fitness equipment. Prime Fitness is contemplating a 4% price cut for all models. It expects the price cut to result in an 8% increase in units sold for models W2301, W2303, and W2305. The other nine models (W2302, W2304, W2306, W2307, W2308, W2309, W2310, W2311, and W2312) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Prime Fitness’s profits and prepare the equity statement.
•Model: W2301
oSales Price: $85
oVariable Costs: $40
oSales Volume: 2,500
•Model: W2302
oSales Price: $95
oVariable Costs: $45
oSales Volume: 3,000
•Model: W2303
oSales Price: $105
oVariable Costs: $50
oSales Volume: 3,500
•Model: W2304
oSales Price: $115
oVariable Costs: $55
oSales Volume: 4,000
•Model: W2305
oSales Price: $125
oVariable Costs: $60
oSales Volume
: 4,500
•Model: W2306
oSales Price: $135
oVariable Costs: $65
oSales Volume: 5,000
•Model: W2307
oSales Price: $145
oVariable Costs: $70
oSales Volume: 5,500
•Model: W2308
oSales Price: $155
oVariable Costs: $75
oSales Volume: 6,000
•Model: W2309
oSales Price: $165
oVariable Costs: $80
oSales Volume: 6,500
•Model: W2310
oSales Price: $175
oVariable Costs: $85
oSales Volume: 7,000
•Model: W2311
oSales Price: $185
oVariable Costs: $90
oSales Volume: 7,500
•Model: W2312
oSales Price: $195
oVariable Costs: $95
oSales Volume: 8,000