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Textbook costs
Textbook costs
As the table below shows, 66 percent of the new textbook "dollar" goes to the publisher, while over 22 percent goes to the retailer. The largest cost elements of the new textbook dollar are manufacturing costs and publisher employee salaries and benefits, which account for about 32 percent.
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Cost Element
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Description
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Amount
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Publisher’s Paper, Printing, Editorial Costs
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All manufacturing costs including paper, editing, storage, distribution, record keeping, billing, publisher’s offices and employee salaries and benefits
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.321
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Publisher’s marketing
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Marketing, advertising, promotion, publisher’s field staff, professors’’ examination copies
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.153
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Author Income
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Author’s royalty payments
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.116
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College bookstore Personnel
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Employee Salaries and Benefits
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.108
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Publisher’s General Administrative
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Federal, State and local taxes
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.099
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College Store Operations
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Insurance, utilities, building and equipment, rent and maintenance and data processing
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.072
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Publisher’s Income
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After tax income
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.070
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College bookstore Income
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Pretax income
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.044
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Freight Expense
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Freight costs from publisher’s warehouse to college bookstore
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.017
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Total
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1.00
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