Question
Multiproduct breakeven point The President is Missing, a best-selling novel by William Jefferson Clinton and James Patterson, was published on June 4, 2018. Amazon.com sells
Multiproduct breakeven point The President is Missing, a best-selling novel by William Jefferson Clinton and James Patterson, was published on June 4, 2018. Amazon.com sells the book in hardcover at $16.99 and as an ebook at $14.99.
A: Assume that Amazon.com sells 150 ebooks for every 100 print books. What is Amazon.com's sales mix of ebooks to print books?
B: How do you think the contribution margin of an eBook compares to the contribution margin of a print book?
C: As Amazon.com's sales mix approaches the 2 to 1 sales mix of Kindle ebooks to print books at Amazon.co.uk, what will likely happen to the breakeven point?"
Could use some help with this...thank you!
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