Question: 11. Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $329. It plans to lower the price to $282 next year.
11. Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $329. It plans to lower the price to $282 next year. Its cost of goods sold for the Hyper 500 is $188 per unit, and this year's sales are expected to be 18,000 units. a. Suppose that, if Hyperion drops the price to $282 immediately, it can increase this year's sales by 24% to 22,320 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 $76 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? a. Suppose that, if Hyperion drops the price to $282 immediately, it can increase this year's sales by 24% to 22,320 units. What would be the incremental impact on this year's EBIT of such a price drop? The change in EBIT will be $ (Round to the nearest dollar.) b. Suppose that, for each printer sold, Hyperion expects additional sales of $76 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 $ The incremental change in EBIT for the first year is $ The incremental change in EBIT for the second year is $ The incremental change in EBIT for the third year is $ (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.) (Round to the nearest dollar.)
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