Amazon's tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this...

 

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Amazon's tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this product is trying to change the way we read books. It is therefore posi- tioned so as to penetrate a revolutionary new target market, the twentysomethings who are comfortable never actually holding hard copies of their textbooks, novels, newspa- pers, or magazines. Listed here is data on hardware components, software licensing, and other costs: display screen $35, touchscreen $25, assembly labor $11, battery $12, processor chip $18, cost of Kindle advertising campaign $7, DRAM memory chip $5, software license $37. 8 GB memory module $8, plant manager salary $6, hardcase and other materials $34, R&D expense $12, FEDEX delivery to customer household $14. 2. Would you expect the Kindle tablet contribution margin percentage to exceed 1. Categorize the listed costs as variable or fixed and calculate a contribution margin 3. What about Apple iPads? Why would their margins be higher? Be specific. handset margins of 13 to 17 percent at Samsung, RIM, and Nokia? Why or why not? Questions percentage defined as the net sales price minus variable costs as a net sales price. a proportion of the Amazon's tablet computer, the Kindle Fire, has slim margins at its $199 retail price. Admittedly, this product is trying to change the way we read books. It is therefore posi- tioned so as to penetrate a revolutionary new target market, the twentysomethings who are comfortable never actually holding hard copies of their textbooks, novels, newspa- pers, or magazines. Listed here is data on hardware components, software licensing, and other costs: display screen $35, touchscreen $25, assembly labor $11, battery $12, processor chip $18, cost of Kindle advertising campaign $7, DRAM memory chip $5, software license $37. 8 GB memory module $8, plant manager salary $6, hardcase and other materials $34, R&D expense $12, FEDEX delivery to customer household $14. 2. Would you expect the Kindle tablet contribution margin percentage to exceed 1. Categorize the listed costs as variable or fixed and calculate a contribution margin 3. What about Apple iPads? Why would their margins be higher? Be specific. handset margins of 13 to 17 percent at Samsung, RIM, and Nokia? Why or why not? Questions percentage defined as the net sales price minus variable costs as a net sales price. a proportion of the

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Solution Contribution 35 25 11 12 18 5 8 6 34 154 S... View the full answer