Question: Amazon s tablet computer, the Kindle Fire, has slim margins at its $ 1 9 9 retail price. Admittedly, this product is trying to change
Amazons tablet computer, the Kindle Fire, has slim margins at its $ retail price. Admittedly, this product is trying to change the way we read books. It is therefore positioned so as to penetrate a revolutionary new target market, the twentysomethings who are comfortable never actually holding hard copies of their textbooks, novels, newspapers, or magazines. Listed here is data on hardware components, software licensing, and other costs: display screen $ touchscreen $ assembly labor $ battery $ processor chip $ cost of Kindle advertising campaign $ DRAM memory chip $ software licenses $ GB memory module $ plant manager salary $ hardcase and other materials $ R&D expense $ FEDEX delivery to customer household $ Questions Categorize the listed costs as variable or fixed and calculate a contribution margin percentage defined as the net sales price minus variable costs as a proportion of the net sales price. Would you expect the Kindle tablet contribution margin percentage to exceed handset margins of to percent at Samsung, RIM, and Nokia? Why or why not? What about Apple iPads? Why would their margins be higher? Be specific. Please solve in excel and show functions
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