Question: Please answer questions A and B. Answer only if you know how to do it. Please show working out too Hyperion, Inc. currently sells its

Please answer questions A and B. Answer only if you know how to do it. Please show working out too

Please answer questions A and B. Answer only if you know how

Hyperion, Inc. currently sells its latest high-speed colour printer, the Hyper 500 , for $364. It plans to lower the price to $312 next year. Its cost of goods sold for the Hyper 500 is $208 per unit, and this year's sales are expected to be 15,000 units. a. Suppose that, if Hyperion drops the price to $312 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 three years, and Hyperion has a gross profit margin of 76% 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 $312 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 dollar.)

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