Week 11 Please Please Help, DISCUSSION QUESTION WEEK 11. Now it\'s your turn to

Question

Week 11

Please Please Help,

DISCUSSION QUESTION WEEK 11. Now it's your turn to apply the concepts learned. Determining profit for a business. A recent news article, $649 iPhone 7 estimated to cost Apple $220, discussed that an estimated cost of raw materials required to make Apple's 4.7-inch iPhone 7 with a base 32GB storage was approximately $220 U.S. dollars. Apple was selling the iPhone 7 for $649 in the United States (most phone carriers reduced the cost for customers who went on a specified plan). Can we conclude from the information above and in the article that Apple is making an economic profit of about $429 per iPhone 7? Explain your response.

Explanation / Answer

According to the information given Apple incur a cost of only $220 in the production of an iPhone and the selling price of that iPhone in the market is $649.

Total profit = Total selling price - Total cost incurred.

So, we can conclude that Apple is earning an approximate profit of about $429 per iPhone 7 they are selling in the market.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.