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Hyperion , Inc . , currently sells its latest high - speed color printer, the Hyper 5 0 0 , for $ 3 5 6
HyperionInc currently sells its latest highspeed color printer, the Hyper for $ $ It plans to lower the price to $ $ next year. Its cost of goods sold for the Hyper is $ $ per unit, and this year's salesat the current price of $ $ are expected to be comma units.
a Suppose that if HyperionHyperion drops the price to $ $ immediatelyrather than waiting one year it can increase this year's sales by to comma 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 $ $ per year on ink cartridges for the threeyear life of the printer, and HyperionHyperion has a gross profit margin of on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop?
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