I'm not sure about the retail book industry but in most retail you're looking at 50% of the price being the markup from the store itself. Maintaining retail outlets is expensive. Then you have to deal with overages and unsold copies. Plus I don't see how the cost of formatting is much additional. After all I'm sure these text are already in an electronic format for the editing and the printing. I think 1/4 sounds like a generous estimate to me.
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