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Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $364. It plans to lower the price to $312 next year. Its
Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $364. It plans to lower the price to $312 next year. Its cost of goods sold for the Hyper 500 is $208 per unit, and this year's sales are expected to be 22,000 units. a. Suppose that, if Hyperion drops the price to $312 immediately, it can increase this year's sales by 29% to 28,380 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 $78 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 65% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year? Question content area bottom Part 1 a. Suppose that, if Hyperion drops the price to $312 immediately, it can increase this year's sales by 29% to 28,380 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in EBIT will be $enter your response here. (Round to the nearest dollar.) Part 2 b. Suppose that, for each printer sold, Hyperion expects additional sales of $78 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 65% on ink cartridges. What is the incremental impact on EBIT for the next three years of a price drop this year? The change in EBIT from ink cartridge sales will be $enter your response here. (Round to the nearest dollar.) Part 3 The incremental change in EBIT for the first year is $enter your response here. (Round to the nearest dollar.) Part 4 The incremental change in EBIT for the second year is $enter your response here. (Round to the nearest dollar.) Part 5 The incremental change in EBIT for the third year is $enter your response here. (Round to the nearest dollar.)
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