Note: The below question (case II) is based on the following information which I already solved for: The text in bold is what I need assistance with.

Each year, Apple produces iPhones using capital and labor according to the production function

Q^S = 1024K^0.8L^0.4

where Q^S is production, K is the amount of capital used and L is the amount of labor used.

Labor's annual cost per worker is $32,768 and capital's cost per unit is $2,097,152. As it turns out, based on these facts, the marginal cost (MC) of producing an iPhone is as follows:

MC = 2560/Q^(1/6). (The S superscript is omitted, but the Q here is supply.)

The demand curve Apple faces for iPhones is

Q^D = 1,000,000 - 1000P

where P is the iPhone's price.

Case II: Now suppose that Apple perceives that their profit-per-unit is too high to avoid (1) entry into the iPhone industry and/or (2) substantial price cuts by Google (on its Android), Samsung (on its Galaxy) and other competitors which would damage the iPhone's profitability substantially (by reducing the 1,000,000 coefficient and increasing the 1000 coefficient in the iPhone demand equation) and perhaps start a price war. So they decide to mark up the iPhone just 50% above average cost (much less of a markup than they are receiving by pricing at MR = MC). Apple sets P = 1.5AC, accepts the demand for its iPhone that this implies, and proceeds to produce the quantity of iPhones necessary to meet market demand ... Q^D = Q^S.

Determine now the following (Case II, on the RIGHT) and compare these to the values found in Case I above (ON THE LEFT) where Apple priced and produced at MR = MC.

Original Case I: MR = MC.New Case II: P = 1.5AC.

3. Q = 347,330 21. Q ______________.

4. MC = 305 22. MC __________.

5. MR = 305 23. MR __________.

9. AC = 366 24. AC ___________.

10. P = 653 25. P ___________.

12. Profit = 35,227,805 26. Profit _______________.

20. Consumer surplus = 60,319,102 27. Consumer surplus__________________.

(You can "goal seek" to do this part as well, setting Q^D - Q^S= 0 by choosing Q^S.)