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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$ 297 next year.Its cost of goods sold for the Hyper 500 is $ 192 per? unit, andthis? year's sales? (at the current price of $ 343?) are expectedto be 2 800 units.a. Suppose that if Hyperion drops the price to $ 297immediately? (rather than waiting one? year) it can increase this?year's sales by 24 % to 27 032 units. What would be the incrementalimpact on this? year's EBIT of such a price? drop?The change in this years EBIT is _______?b. Suppose that for each printer? sold, Hyperion expectsadditional sales of $ 87 per year on ink cartridges for the?three-year life of the? printer, and Hyperion has a gross profitmargin of 82 % on ink cartridges. What is the incremental impact onEBIT for the next three years of such a price? drop?The change in EBIT from ink cartriges will be___________?The change in EBIT year 1 is $____________?The change in EBIT year 2 is $___________?The change in EBIT year 3 is $__________?Please answer all questions and show all work!
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