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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500 , for $343. It plans to lower the price to $307 next year.

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Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500 , for $343. It plans to lower the price to $307 next year. Its cost of goods sold for the Hyper 500 is $201 per unit, and this year's sales (at the current price of $343 ) are expected to be 23,900 units. a. Suppose that if Hyperion drops the price to $307 immediately (rather than waiting one year) it can increase this year's sales by 30% to 31,070 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 $85 per year on ink cartridges for the three-year life of the printer, and Hyperion has a gross profit margin of 82% on ink cartridges. What is the incremental impact on EBIT for the next three years of such a price drop

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