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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500 , for $349. It plans to lower the price to $303 next year.

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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500 , for $349. It plans to lower the price to $303 next year. Its cost of goods sold for the Hyper 500 is $206 per unit, and this year's sales (at the current price of $349 ) are expected to be 26,100 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 22% to 31,842 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 $87 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 71% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop

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