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Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $340. It plans to lower the price to $304 next year. Its

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Hyperion, Inc. currently sells its latest high-speed color printer, the Hyper 500, for $340. It plans to lower the price to $304 next year. Its cost of goods sold for the Hyper 500 is $210 per unit, and this year's sales are expected to be 21,200 units. (a) Suppose that if Hyperion drops the price to $304 immediately, rather than waiting a year, it can increase this year's sales by 28% to 27,136 units. What would be the incremental impact on this year's EBIT of such a price drop? In other words, the change in this year's EBIT would be $ (b) Suppose that for each printer sold, Hyperion expects additional sales of $52 per year on ink cartridges for the next years, 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 a price drop this year? (i) The change in EBIT from ink cartridge sales will be $ (ii) The change in EBIT year 1 will be $ (iii) The change in EBIT year 2 will be $ (iv) The change in EBIT year 3 will be $

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