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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $358. It plans to lower the price to $309 next year. Its
Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $358. It plans to lower the price to $309 next year. Its cost of goods sold for the Hyper 500 is $207 per unit, and this years sales (at the current price of 5358) are expected to be 28,900 units a Suppose that if Hyperion drops the price to $309 m ediately rather than wait ng one year it can increase this year's sales by 29% to 37.281 units What would be the incremental impact on this year's EBIT of such a price drop? b. Suppose hat for each printer sold, Hyper on expects additional sales o S90 per year on ink car es or he three-year e o the pr ter and Hiper on has a gross profit margin 63% on nk cartridges. What she ncrementa impact on EBIT for the next three years of such a price drop? a. Suppose that if per on drops the price to S309 im dat rather than waiting one year t an incease this year's sales by 29% to 37. 81 unit what would be l e incremental mpact on tifisea's b nuda i ro The change in this year's EBIT is (Round to the nearest dollar. Enter a decrease as a negative number.) dges for the three-year life of the printer, and Hyper on has a gross profi ma in of 63% on nk cart dges. What s the ncrementa b. Suppose that for each pri ter sold, Hyperion expects additional sales of S90 per year on in impact on EBIT for the next three years of such a price drop? ca 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 S(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)
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