After-tax income from which the publisher pays for new product development, author advances, market research and dividends to stockholders.
Publisher's Paper, Prinitng, Editorial Costs
All manufacturing costs from editing to paper costs to distribution, as well as storage, record keeping, billing, publisher's offices, employee's salaries and benefits.
Author's royalty payment from which author pays research and writing expenses.
Publisher's General & Administrative
Publisher's Marketing Costs
Marketing, advertising, promotion, publisher's field staff, professors' free copies.
College Store Personnel
Store employee's salaries and benefits to handle ordering, receiving, pricing, shelving, cashiers, customer service, refund desk and sending extra textbooks back to the publisher.
The cost of getting books from the publisher's warehouse or bindery to the college store. Part of cost of goods sold paid to freight company.
College Store Operations
Insurance, utilities, building and equipment rent and maintenance, accounting and data processing charges and other overhead paid by college stores.
College Store Income
Note: The amount of federal, state and/or local tax, and therefore the amount and use of any after-tax profit, is determined by the store's ownership, and usually depends on whether the college store is owned by an institution of higher education, a contract management company, a cooperative, a foundation, or by private individuals