Question: Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $343. It plans to lower the price to $294 next year. Its

Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500, for $343. It plans to lower the price to $294 next year. Its cost of goods sold for the Hyper 500 is $196 per unit, and this year's sales are expected to be 19,000 units. a. Suppose that, if Hyperion drops the price to $294 immediately, it can increase this year's sales by 23% to 23,370 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 $65 per year on ink cartridges for the three years, and Hyperion has a gross profit margin of 75% on ink cartridges. What

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