Question: Hyperion Limited currently sells its latest high-speed colour printer, the Hyper 500, for $341. It plans to lower the price to $292 next year. Its
Hyperion Limited currently sells its latest high-speed colour printer, the Hyper 500, for $341. It plans to lower the price to $292 next year. Its cost of goods sold for the Hyper 500 is $195 per unit, and this year's sales are expected to be 15 000 units. a. Suppose that if Hyperion drops the price to 5292 immediately, it can increase this year's sales by 25% to 18 750 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 $81 per year on ink cartridges for the next three years, and Hyperion has a gross profit margin of 68% 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 $292 immediately, it can increase this year's sales by 25% to 18 750 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 color) b. Suppose that for each printer soll, Hyperion expects additional sales of $81 per year on ink cartridges the next three years, and Hyperion has a gross profit margin of 68% 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 $(Round to the nearest dolar) The Incremental change in EBIT for the first year is $(Round to the nearest dollar) The incremental change in Edit for the second year is $). (Round to the nearest dollar.) The Incremental change in EBIT for the third year is $. (Round to the nearest dollar)
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