Net Sales By Product	Total Revenue	Sales Mix	Qty	Avg. Unit Price	Avg Unit Variable Cost
Iphone	$136,700,000,000.00	76.00%	211884000	$645.16	$300.00
Ipad	$20,628,000,000.00	11.00%	45590000	$452.47	$200.00
Mac	$22,831,000,000.00	13.00%	18484000	$1,235.18	$600.00
	$180,159,000,000.00	100.00%	275958000
Fixed Costs					$47,602,400,000.00

7) Compute the degree of operating leverage using 2016 data presented above (Use a CVP income statement). Interpret your results. (10 points)

8) If Apple was to move its plant to the United States:(10 points)

a. What will be the new sales price be: i. For the iPhone ii. If the other products line moved up by the same percentage what will be the new sales price be for the iPad and iMac.

b. If variable cost increased by 20% as a result of re-locating, what is the new variable cost

c. If fixed cost increased by 25%, what will be the new fixed cost

d. Calculate the breakeven cost based on the changes

9) If Apple chose to stay in China, and a 45% tariff was imposed on Chineses manufactured goods, what will be the impact on Apple profitability (Your illustrations will carry the bulk of the points, only use words to emphasize your point). (10 points) 10) Apple has just appointed you the new CFO, given the circumstances described in this case, how would you lead Apple forward? (5 points)

10) Apple has just appointed you the new CFO, given the circumstances described in this case, how would you lead Apple forward? (5 points)