Normal No Spacing assumptions iPhone 8 Phone XPs IPhone 8 IPhone 7 Sales price (base models) Estimated direct materials (from IHS Markit and Susquehanna International Group) Estimated direct labor (assembly and testing) Estimated retail packaging and shipping to warehouses/stores)5 799 699 649 581 288 248 248 4 Total variable costs 594 297 257 257 Contribution margin per phone Minutes of skilled labor required for assembly 405 502 442S392 Questions Which iPhone model is the most profitable for Apple? Which metric are you using to gauge profitability? Defend your choice of metric. 1. 2. Assume that Apple has unlimited demand for every iPhone model. Which model should it emphasize to maximize profits if skilled labor is a scarce resource? Why might Apple offer several iPhone models rather than just the one most profitable model? 3