Amazon.com announced in a May 19, 2011, news release that the company was selling more Kindle books

Question:

Amazon.com announced in a May 19, 2011, news release that the company was selling more Kindle books than traditional print books. From their first sales in November 2007, these ebooks have continued to grow in popularity and by the beginning of 2011 had overtaken paperback books as the most popular book format on the site. At April 1, 2011, the company was selling 105 Kindle books for every 100 print books.

Required

a. What is Amazon.com’s sales mix of Kindle ebooks to print books?
b. How do you think the on a Kindle ebook compares to the of a print book?
c. As Amazon.com’s sales mix approaches the 2 to 1 sales mix of Kindle ebooks to print books at Amazon.co.uk, what will likely happen to the breakeven point?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...