We've been doing a lot of speculating here in past months over what an e-book costs to produce, trying to get a handle on what it ought to cost the consumer.
There is
an article in Kindle 2 Review about the costs of producing paper books that might be worth looking at.
To be sure you see it (it's not showing up as a link in my preview) the article is here:
http://ireaderreview.com/2009/05/03/...ok-publishing/