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Adventure Tech manufactures and sells 7 different models of adventure gear. Adventure Tech is contemplating a...

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Accounting

Adventure Tech manufactures and sells 7 different models of adventure gear. Adventure Tech is contemplating a 6% price cut across all 7 models. It expects the price cut to result in a 10% increase in the number of units sold for models DD3001, DD3003, DD3005, and DD3007. The other three models (DD3002, DD3004, and DD3006) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Adventure Tech’s profits and prepare a balance sheet.

Model

Sales Price

Variable Costs

Sales Volume

DD3001

$75

$35

2,000

DD3002

$85

$40

2,500

DD3003

$95

$45

3,000

DD3004

$105

$50

3,500

DD3005

$115

$55

4,000

DD3006

$125

$60

4,500

DD3007

$135

$65

5,000

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