Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $356. It plans to lower the price to $303 next year. Its cost of goods sold for the Hyper 500 is $203 per unit, and this year's sales (at the current price of $356) are expected to be 22,400 units. a. Suppose that if Hyperion drops the price to $303 immediately (rather than waiting one year) it can increase this year's sales by 20% to 26,880 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 $100 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 74% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop? * a. Suppose that if Hyperion drops the price to $303 immediately (rather than waiting one year) it can increase this year's sales by 20% to 26,880 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in this year's EBIT is $ (Round to the nearest dollar. Enter a decrease as a negative number.) b. Suppose that for each printer sold, Hyperion expects additional sales of $100 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 74% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop? The change in EBIT from ink cartridge sales will be $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT year 1 is $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT for year 2 is $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT for year 3 is $ . (Round to the nearest dollar. Enter a decrease as a negative number.) Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $356. It plans to lower the price to $303 next year. Its cost of goods sold for the Hyper 500 is $203 per unit, and this year's sales (at the current price of $356) are expected to be 22,400 units. a. Suppose that if Hyperion drops the price to $303 immediately (rather than waiting one year) it can increase this year's sales by 20% to 26,880 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 $100 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 74% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop? * a. Suppose that if Hyperion drops the price to $303 immediately (rather than waiting one year) it can increase this year's sales by 20% to 26,880 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in this year's EBIT is $ (Round to the nearest dollar. Enter a decrease as a negative number.) b. Suppose that for each printer sold, Hyperion expects additional sales of $100 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 74% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop? The change in EBIT from ink cartridge sales will be $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT year 1 is $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT for year 2 is $ (Round to the nearest dollar. Enter a decrease as a negative number.) The change in EBIT for year 3 is $ . (Round to the nearest dollar. Enter a decrease as a negative number.)
