Amazon's tablet computer Kindle has slim contribution margin s at the $199 retail price. Admittedly, this product

Question:

Amazon's tablet computer Kindle has slim s 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 and percentage per unit
c) What about Apple iPads - Would their s be higher? Support your answer (your answer will require some market knowledge and relationship to pricing power).
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...