Apple is evaluating the costs associated with developing a new line of wearable technology. The development costs are estimated at $500 million, with variable manufacturing costs projected at $50 per unit. Apple anticipates selling 5 million units annually, generating $2 billion in revenue.

Requirements:

• Present the development costs and variable manufacturing costs in a bullet-point format.
• Calculate the total investment and variable costs for manufacturing the new technology.
• Determine the contribution margin per unit and total contribution margin.
• Analyze the market demand and competitive landscape for wearable technology.
• Discuss the strategic importance of diversifying Apple's product portfolio.
• Evaluate the financial implications of the new product line on Apple's balance sheet.