Question - On April 24, 2015, Apple entered the wearable technology market with the release of its Apple Watch. A May 1, 2015, article published in The Wall Street Journal estimated that the cost of materials and labor required to produce the watch totaled $80.80. The Apple Watch's retail price is $369.
know that:
Costs of material & labor are: 22%
Markup amount is: $288.20
Markup percentage for watch is: 356%
Estimates for the iPad mini 2 place materials and labor cost at 42% of the retail price. If Apple had wanted to maintain that same relationship between materials and labor cost and retail price for the Apple Watch, what price would Apple have set for the watch? What markup percentage of the cost would have yielded this price?