Hyperion, Inc. currently sells its latest high$-$speed colour printer, the Hyper $500,$ for $$347.$ It plans to lower the price to $$297$ next year. Its cost of goods sold for the Hyper $500$ is $$198$ per unit, and

this year's sales are expected to be $16,000$ units.

a$.$ Suppose that, if Hyperion drops the price to $$297$ immediately, it can increase this year's sales by $27\%$ to $20,320$ units. What would be the incremental impact on this year's EBIT of such a

price drop?

b$.$ Suppose that, for each printer sold, Hyperion expects additional sales of $$73$ per year on ink cartridges for the three years, and Hyperion has a gross profit margin of $70\%$ on ink cartridges. What

is the incremental impact on EBIT for the next three years of a price drop this year?