ABC Inc. currently sell its lawnmowers at $120 each. The COGS for every lawnmower is $50, and ABC expects to sell 10,000 units over the next year. ABC plans to lower prices to $100 per lawnmower. If the price reduction happens, ABC expects the number of units sold to increase by 20%. Furthermore, with greater scale of economies, the COGS per lawnmower will fall by 10%. What is the incremental impact of the price reduction on EBIT?

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