Yes, it was an interesting article.
Quote:
For cover design, typesetting and copy-editing, the publisher pays about 80 cents.
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Quote:
Without accounting for such write-offs, the publisher is left with $4.05, out of which it must pay overhead for editors, cover art designers, office space and electricity before taking a profit.
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So the article counts the cover and formatting twice: once for the work, another time for the worker.
Plus they count only the storage on the publisher's side of the expenses.