subject
Business, 20.06.2020 21:57 calah1193

Hyperion Inc., currently sells its latest high-speed colour printer, the Hyper 500, for $ 371. Its cost of goods sold for the Hyper 500 is $ 212 per unit, and this year's sales (at the current price of $ 371) are expected to be 22 comma 000 units. Hyperion plans to lower the price of the Hyper 500 to $ 318 one year from now. a. Suppose Hyperion considers dropping the price to $ 318 immediately, (rather than waiting one year). By doing so it expects to increase this year's sales by 24 % to 27 comma 280 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-year life of the printer, and Hyperion has a gross profit margin of 62 % on ink cartridges. What is the incremental impact on EBIT for the next three years of dropping the price immediately (rather than waiting one year)?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 02:30
rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is
Answers: 2
question
Business, 23.06.2019 01:30
Akika corporation started as a small firm and has grown substantially in the past decade. its interests span from electronics to real estate and aviation. akika's board of directors have now decided to create independent business units for and categorize the actions performed under each domain. each business unit will have distinct roles and responsibilities. which of the 14 principles of fayol does this exemplify?
Answers: 3
question
Business, 23.06.2019 02:00
Which of the following is the best example of substitution? a. movie producers begin making more comedies because they cost less to make than action films. b. people walk out before the end of a movie because the acting and the plot are terrible. c. people at the movie theater switch from popcorn to candy because popcorn has gotten too expensive. d. more people begin going to matinee movies instead of night movies to save money on the tickets.
Answers: 2
question
Business, 23.06.2019 14:30
List the four stages of ability development. provide an example of a person developing a specific ability. what would each stage look like? career planing
Answers: 1
You know the right answer?
Hyperion Inc., currently sells its latest high-speed colour printer, the Hyper 500, for $ 371. Its c...
Questions
question
Social Studies, 17.12.2019 02:31
question
Mathematics, 17.12.2019 02:31
question
Mathematics, 17.12.2019 02:31
Questions on the website: 13722363