Variables are expressed as a % of the original price.
Calculation Method:
Final Price = (Base Price × BOM %) + (Base Price × Other Costs %) + (Base Price × Margin %) + (Tariff on
BOM)
Where Tariff on BOM = (Base Price × BOM %) × Tariff Rate
Where:
- BOM %: Cost of components as % of Base
Price (Default: 51% iPhone, 46% Watch, 48% iPad, 56% MacBook, 57% Mac)
- Other Costs %: Other costs as %
of Base Price (Default: 12% iPhone, 13% Watch, 13% iPad, 11% MacBook, 11% Mac)
- Margin %: Profit margin as % of Base
Price (Default: 37% iPhone, 41% Watch, 39% iPad, 33% MacBook, 32% Mac)
- Tariff Rate: We assume U.S. import tax applies *only* to the BOM Cost portion.