Problem 4 [25 points) In your position as senior manager at Apple, you are in charge of determining nal specications and pricing for the soon-to-be-released iPhone 6c a cheaper alternative to the iPhone 65 in much the same way that the iPhone 5c was produced as a cheaper alternative to the iPhone 55. Your team has collected an overwhelming volume of market research data to assist you in these decisions, which we have simplied and distilled for you here. You have two types of customers, who can be classied as Tech Heads and Bargain Hunters. Tech Heads are willing to pay $650 for an iPhone 65 [the current model], while Bargain Hunters are only willing to pay $400. There are approximately 50 million Tech Heads in the market for a phone each year and an equal number of Bargain Hunters. The cost of manufacturing an iPhone 65 is approximately $250. For the purposes of this question, ignore other iPhones currently sold, such as the iPhone 6, the 6+, and the 65+. a. Given the data above, conrm that your team's decision last September to price the iPhone 6s at $650 was correct. Estimate Apple's prot for the year, absent the introduction of the new model. [5 points]