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Hyperion , Inc . , currently sells its latest high - speed color printer, the Hyper 5 0 0 , for $ 3 5 6

Hyperion,Inc., currently sells its latest high-speed color printer, the Hyper500, for $ 356$356. It plans to lower the price to $ 309$309 next year. Its cost of goods sold for the Hyper 500 is $ 205$205 per unit, and this year's sales(at the current price of $ 356$356) are expected to be 29 comma 80029,800 units.
a. Suppose that if HyperionHyperion drops the price to $ 309$309 immediately(rather than waiting one year), it can increase this year's sales by 21%21% to 36 comma 05836,058 units. What would be the incremental impact on this year's EBIT of such a price drop?
b. Suppose that for each printer sold, HyperionHyperion expects additional sales of $ 85$85 per year on ink cartridges for the three-year life of the printer, and HyperionHyperion has a gross profit margin of 86%86% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop?

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