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Hyperion, Inc. currently sells its latest high - speed colour printer, the Hyper 5 0 0 , for $ 3 5 3 . It plans
Hyperion, Inc. currently sells its latest highspeed colour 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 sales are expected to be units.
a Suppose that, if Hyperion drops the price to $ immediately, it can increase
this year's sales by to 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 $ per
year on ink cartridges for the three years, 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 this year?
a Suppose that, if Hyperion drops the price to $ immediately, it can increase
this year's sales by to 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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