The President is Missing, a best-selling novel by Bill 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.
Required
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?
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