Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $ 353 . It plans to lower the price to $ 302 next year. Its cost of goods sold for the Hyper 500 is $ 206 per unit, and this year's sales (at the current price of $ 353 ) are expected to be 22 comma 300 units.

a. Suppose that if Hyperion drops the price to $ 302 immediately (rather than waiting one year) it can increase this year's sales by 25 % to 27 comma 875 units. What would be the incremental impact on this year's EBIT of such a price drop?

The change in this year's EBIT is $__

b. Suppose that for each printer sold, Hyperion expects additional sales of $ 70 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 69 % on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop?