Pricing Strategy and Profit Maximization at Apple

Requirements:

1. Develop a pricing strategy for Apple's new iPhone model based on cost-plus pricing and value-based pricing methods.

Cost Elements	Amount ($)
Direct Materials	$300 per unit
Direct Labor	$50 per unit
Variable Overhead	$30 per unit
Fixed Costs	$1,000,000,000
Expected Sales Volume	50,000,000 units

2. Calculate the minimum price per unit required to achieve a 25% profit margin.
3. Perform a sensitivity analysis to evaluate the impact of changes in variable costs and sales volume on profitability.
4. Recommend a pricing strategy that balances market competitiveness with profit maximization.