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Hyperion, Inc. currently sells its latest high - speed colour printer, the Hyper 5 0 0 , for $ 3 4 2 . It plans

Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $342. It plans to lower the price to $293 next
year. Its cost of goods sold for the Hyper 500 is $195 per unit, and this year's sales are expected to be 23,000 units.
a. Suppose that, if Hyperion drops the price to $293 immediately, it can increase this year's sales by 22% to 28,060 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 $85 per year on ink cartridges for the three years, and
Hyperion has a gross profit margin of 66% on ink cartridges. What is the incremental impact on EBIT for the next three years of a
price drop this year?
a. Suppose that, if Hyperion drops the price to $293 immediately, it can increase this year's sales by 22% to 28,060 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.)
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