Apple Computer鈥檚 cost to produce the components, the headphones and the packaging it ships in comes to $21.77?

for the iPod shuffle. That鈥檚 about 28% of the device鈥檚 retail price of $79.





a. Is Apple making $57 profit per shuffle? If not, explain Apple鈥檚 other costs in terms of fixed and variable costs.


b. If Apple reduced its price for the shuffle, what do you think would happen to their profit? What impact would the price decrease have on their competitors? Explain.|||Don't get me started...Apple's Shuffle and all, I mean ALL of Apple's iPods and computers are what they call price set, and not one retailer gets a penny off selling an iPod. The money for them is in the accesories.





Popularity of the iPod gives retailers enough reason to risk making money off of accessories alone.





Apple cornered the market in digital music players early, and pandered to the young like a pedophile with a puppy.|||http://en.wikipedia.org/wiki/Operating_c鈥?/a>


http://en.wikipedia.org/wiki/Overhead_(b鈥?/a>


http://en.wikipedia.org/wiki/Gross_margi鈥?/a>