Quote:
Originally Posted by mr ploppy
Those are all fixed costs. It would be the variable costs that would affect whether something was profitable to sell or not. Variable costs are costs that are only associated with a sale — for a real book it would be packaging and postage. For an ebook it would be cost of transfer. Fixed costs need to be covered too, but you do that differently, usually a percentage based on your expected annual sales.
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My point was that if all Amazon's products were sold for less than 1c, they could not afford to operate.