Simpson Company is considering introducing a new compact disc player model at a price of $105 per unit. The Chief Financial Officer (CFO) for the company has complied the following incremental cost data based on an estimated 120,000 units of sales annually for the new product: Direct materials $3,600,000 Direct labour $2,400,000 Variable manufacturing overhead $1,200,000 Sales commission 10% of sales Fixed costs $2,000,000 The sales manager for Simpson Company expects the introduction of the new model to result in a reduction in sales of the existing compact disc player model from 300,000 to 240,000 units. The contribution margin for the existing model is $20 per unit. Required: a) Determine the total impact on Simpson's profit from the introduction of the new model. b) Should Simpson introduce the new compact disc player model? Explain