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I don't know why they can't figure out profits. It's just simple math across the top, and this comes from someone who's not a math wiz. All you do is start with your total profits from all sales over a given time period (don't count distribution fees or anything that the distributors themselves take as that's money that never sees your hands, and thus shouldn't be put into the math.), and start subtracting things like marketing costs, formatting, labor, corporate overhead, etc. Whatever is left is your profit.
I think though that they don't understand how to do a simple expense breakdown for an individual product since they've been working at it for so long and are so big. Being with a small house it's really darned easy to do a full breakdown on the sales of an item. But I suspect that big house have a LOT bigger expense footprint, and thus it would be hard for them to get a full accounting of the cost associated with each ebook. But even so, it can't be *THAT* hard. The first time you do it things will be a bit hard, but once you have a baseline you can use that number to do a rough profit calculation on any product.
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