According to a March 3, 2012, EETimes.com article, Apple enjoyed a 56% gross margin on its iPad2 when it was first released in March 2011.
a. Given that the iPad2 sold for $629, what was the cost to make it, assuming the 56% gross margin?
b. In March 2012, the second year of production, the cost of producing an iPad2 fell to an estimated $248.07. What markup percentage would Apple need to use to maintain its $629 sales price?
c. If Apple had maintained the iPad's 56% gross margin after the cost decrease, what sales price would it have put on the iPad?
d. In March 2012, Apple announced the upcoming release of an iPad 4G that would be sold for $629. If the estimated cost to produce the new iPad 4G was $310, what markup percentage was Apple apparently willing to accept for the new iPad?