Outdoor Gear Pro manufactures and sells 6 different models of outdoor gear. Outdoor Gear Pro...
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Outdoor Gear Pro manufactures and sells 6 different models of outdoor gear. Outdoor Gear Pro 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 II3501, II3503, and II3505. The other three models (II3502, II3504, and II3506) are expected to see a 5% increase in sales volume. Assess the impact of the price cut on Outdoor Gear Pro’s profits and prepare the equity statement. •Model: II3501 oSales Price: $85 oVariable Costs: $40 oSales Volume: 2,000 •Model: II3502 oSales Price: $95 oVariable Costs: $45 oSales Volume: 2,500 •Model: II3503 oSales Price: $105 oVariable Costs: $50 oSales Volume: 3,000 •Model: II3504 oSales Price: $115 oVariable Costs: $55 oSales Volume: 3,500 •Model: II3505 oSales Price: $125 oVariable Costs: $60 oSales Volume: 4,000 •Model: II3506 oSales Price: $135 oVariable Costs: $65 oSales Volume: 4,500
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