What will happen to the gross margin generated by the iPad if Apple reduces the price by
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What will happen to the gross margin generated by the iPad if Apple reduces the price by $100? The base Wi-Fi 16 GB iPad was introduced at $499; like all electronic products, Apple will likely lower the price within a year or two of introduction. The 16 GB iPad’s cost of goods sold is $250. Refer to Appendix 2 to answer the following questions.
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