Quote:
Originally Posted by pdurrant
Yes, overhead expenses are fixed. No, they are not $50,000 per title.
From the article: "At several publishing houses, they have a standard “overhead” charge of about $2 per book, or $50,000 per title."
The author of the article has the overhead right ("about $2 per book") but has then confused matters by adding "or $50,000 per title" without specifying whether that's a minimum or a maximim.
It clearly can't be a minimum. No publishing house could survive with a minimum overhead of $50,000 per title. It must be intended either as a maximum, or as the number from the example that follows.
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$50,000 per title as the assigned overhead is a figure that I've read multiple places. The overhead is neither a minimum or maximum, but a fixed cost. In theory it comes from adding up the fixed expenses of the publishing house, divided by the number of titles they publish in a year. It's for things like office space, staff salary, and any number of things that are not for a specific title.