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Long question, I don't even know where to start :/ 5 subparts total Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500,

Long question, I don't even know where to start :/ 5 subparts total

Hyperion Inc., currently sells its latest high-speed color printer, the Hyper 500, for $356. Its cost of goods sold for the Hyper 500 is $193 per unit, and this year's sales (at the current price of $356) are expected to be 20,100 units. Hyperion plans to lower the price of the Hyper 500 to $303 one year from now. Suppose Hyperion considers dropping the price to $303 immediately (rather than waiting one year). By doing so it expects to increase this year's sales by 29% to 25,929 units. What would be the incremental impact on this year's EBIT of such a price drop? Suppose that for each printer sold, Hyperion expects additional sales of $94 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 dropping the price immediately (rather than waiting one year)?

a.Suppose Hyperion considers dropping the price to $303 immediately (rather than waiting one year). By doing so it expects to increase this year's sales by 29% to 25,929 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in this year's EBIT is $XX (Round to the nearest dollar. Enter a decrease as a negative number.)

b. Suppose that for each printer sold, Hyperion expects additional sales of $94 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 dropping the price immediately (rather than waiting one year)? The change in EBIT from ink cartridge sales will be $XX. (Round to the nearest dollar. Enter a decrease as a negative number.)

The change in EBIT year 1 is $XX. (Round to the nearest dollar. Enter a decrease as a negative number.)

The change in EBIT for year 2 is $XX. (Round to the nearest dollar. Enter a decrease as a negative number.)

The change in EBIT for year 3 is $XX. (Round to the nearest dollar. Enter a decrease as a negative number.)

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