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5) Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500 , for $400. It plans to lower the price to $300 next
5) Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500 , for $400. It plans to lower the price to $300 next year. Its cost of goods sold for the Hyper 500 is $200 per unit, and this year's sales are expected to be 20,000 units. a. Suppose that if Hyperion drops the price to $300 immediately, it can increase this year's sales by 25% to 25,000 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 $80 per year on ink cartridges for the next three years, and Hyperion has a gross profit margin of 60% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year
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