1.6 An article on cnet.com reported on the findings of the marketing research firm IHS in its investigation of the cost of the components used to produce the 128GB Apple iPad Air 2 model with wifi + cellular. The firm found that this iPad model costs $358 to produce, 57 percent less than its retail price of $829. Does this mean that Apple is making a profit of $471 on each of these iPad Air2 models? Briefly explain.

Source: Don Reisinger, “iPad Air 2 models cost Apple $275 to $358, teardowns reveal,” cnet.com, October 29, 2014.