ProCycle manufactures and sells 8 different models of bicycles. ProCycle is contemplating a 4% price cut across all 8 models. It expects the price cut to result in a 9% increase in the number of units sold for models O1501, O1503, and O1505. The other five models (O1502, O1504, O1506, O1507, and O1508) are expected to see a 5% increase in sales volume. Assess the impact of the price cut on ProCycle’s profits and prepare the retained earnings statement.

Model	Sales Price	Variable Costs	Sales Volume
O1501	$120	$60	1,000
O1502	$130	$65	1,500
O1503	$140	$70	2,000
O1504	$150	$75	2,500
O1505	$160	$80	3,000
O1506	$170	$85	3,500
O1507	$180	$90	4,000
O1508	$190	$95	4,500