Question: Amazon's tablet computer Kindle has slim contribution margin s at the $199 retail price. Admittedly, this product is trying to change the way we read

Amazon's tablet computer Kindle has slim contribution margins at the $199 retail price. Admittedly, this product is trying to change the way we read books. Listed here is the data on hardware components, software licensing, and other costs per unit at current production levels.
• Display screen $35
• Touch screen $25
• Assembly labor $11
• Battery $12
• DRAM Processor Chips $22
• Allocated Advertising $ 7
• Allocated overhead $14
• Software License $37
• 8 GB memory module $8
• Allocated R&D $12
• Wireless WiFi / Bluetooth $6
• Hard case $34
a) Categorize the listed costs as variable or fixed costs.
b) Calculate the contribution margin and contribution margin percentage per unit
c) What about Apple iPads - Would their contribution margins be higher? Support your answer (your answer will require some market knowledge and relationship to pricing power).

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