Question
Suppose according to a March 3, 2012, EETimes.com article, Apple enjoyed a 61% gross margin on its iPad2 when it was first released in March
Suppose according to a March 3, 2012, EETimes.com article, Apple enjoyed a 61% gross margin on its iPad2 when it was first released in March 2011.
Given that the iPad2 sold for $640.00, what was the cost to make it, assuming the 61% gross margin?
Answer: Cost $249.60
In March 2012, the second year of production, the cost of producing an iPad2 fell to an estimated $244.51. What markup percentage would Apple need to use to maintain its $640.00 sales price?
Answer: Markup percentage 161.8%
If Apple had maintained the iPad's 61% gross margin after the cost decrease, what sales price would it have put on the iPad?
Answer: Sales price $626.95
In March 2012, Apple announced the upcoming release of an iPad 4G that would be sold for $640.00. If the estimated cost to produce the new iPad 4G was $319, what markup percentage was Apple apparently willing to accept for the new iPad? (Round answer to 1 decimal place, e.g. 25.2%.)
Markup percentage %
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