Morris Incorporated is a management consulting firm that specializes in management training programs. Tackle

Manufacturing Incorporated has approached Morris to contract for management training for a one$-$year period.

Last year's income statement for Morris is as follows:

To satisfy the Tackle contract, another part$-$time trainer will need to be hired at $$42,000.$ Supplies will increase

by $12\%$ and other costs will Increase by $15\%.$ In addition, new equipment will need to be leased at a cost of

$$2,500.$

a$.$ What are the differential costs that would be incurred if the Tackle contract is signed?

b$.$ If Tackle will pay $$55,000$ for one year, should Morris accept the contract? Explain your answer.