Complete A and B

Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500 , for $347. It plans to lower the price to $299 next year. Its cost of goods sold for the Hyper 500 is $194 per unit, and this year's sales (at the current price of $347 ) are expected to be 22,600 units. a. Suppose that if Hyperion drops the price to $299 immediately (rather than waiting one year) it can increase this year's sales by 25% to 28,250 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 $97 per year on ink cartridges for the three-year life of the printer, 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 such a price drop? a. Suppose that if Hyperion drops the price to $299 immediately (rather than waiting one year) it can increase this year's sales by 25% to 28,250 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 $ (Round to the nearest dollar. Enter a decrease as a negative number.)