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Hyperion , Inc. currently sells its latest high - speed colour printer, the Hyper 5 0 0 , for $ 3 4 7 . It

Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper500, for $ 347. It plans to lower the price to $ 297 next year. Its cost of goods sold for the Hyper 500 is $ 198 per unit, and this year's sales are expected to be 18 comma 000 units.
a. Suppose that, if Hyperion drops the price to $ 297immediately, it can increase this year's sales by 28% to 23 comma 040 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 $ 78 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 80% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year?
Part 1
a. Suppose that, if Hyperion drops the price to $ 297immediately, it can increase this year's sales by 28% to 23 comma 040 units. What would be the incremental impact on this year's EBIT of such a price drop?
The change in EBIT will be $ (Round to the nearest dollar.)
Part 2
b. Suppose that, for each printer sold, Hyperion expects additional sales of $ 78 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 80% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year?
The change in EBIT from ink cartridge sales will be $ (Round to the nearest dollar.)
Part 3
The incremental change in EBIT for the first year is $ (Round to the nearest dollar.)
Part 4
The incremental change in EBIT for the second year is $ (Round to the nearest dollar.)
Part 5
The incremental change in EBIT for the third year is $ (Round to the nearest dollar.)

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