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Hyperion , Inc. currently sells its latest high - speed colour printer , the Hyper 5 0 0 , for $ 3 7 3 .
Hyperion Inc. currently sells its latesthighspeed colourprinter the Hyper for $ It plans to lower the price to $ next year. Its cost of goods sold for the Hyper is $ perunit and thisyears sales are expected to be units.
a Supposethat if Hyperion drops the price to $immediately it can increase thisyears sales by to units. What would be the incremental impact on thisyears EBIT of such a pricedrop
b Supposethat for each printersold Hyperion expects additional sales of $ per year on ink cartridges for the threeyears and Hyperion has a gross profit margin of on ink cartridges.
What is the incremental impact on EBIT for the next three years of a price drop thisyear
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