1. Calculate the incremental contribution realized by adding the new iPhone 4 if sales during the first six months of launch were 5 million units. However, the company also estimated that 30 percent of iPhone 4 sales came from customers who would have purchased the iPhone 3G but instead purchased the base model of the iPhone 4.
2. Apple also offered a 32 GB version of the iPhone 4 at a price of $299. Variable costs for that version were $250. Besides its higher price, explain why Apple would encourage customers to purchase the 32GB over the 16GB version