What it costs for a best-selling e-book: $12.99
Contrary to popular belief, the costs of creating an e-book and a hardcover edition are similar. About 10 percent of hardcover costs go to printing, binding and shipping. Publishers set a retail price for an e-book, and selling agents such as Amazon.com and Apple receive a flat percentage of that retail price. These estimates are based on sales of 75,000. Expenses for a book include one-time costs such as editing and marketing. Many e-books lose money for publishers; e-books that sell millions of copies offset losses from less popular books. - Andrew Schneider
COST TO PUBLISHER$9.09
COST TO RETAILER$3.90
Digital rights management.10
Pre-tax operating profit3.30
Price to consumer$12.99
Schneider is an MBA student at George Washington University.