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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $352. It plans to lower the price to $299 next year. Its

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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $352. It plans to lower the price to $299 next year. Its cost of goods sold for the Hyper 500 is $196 per unit, and this year's sales (at the current price of $352) are expected to be 25,100 units. a. Suppose that if Hyperion drops the price to $299 immediately (rather than waiting one year) it can increase this year:s sales by 29% to 32,379 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 $93 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 68% 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 $299 immediately (rather than waiting one year) it can increase this year's sales by 29% to 32,379 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in this year's EBT is (Round to the nearest dollar. Enter a decrease as a negative number.)

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