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Why was amazon willing to lose money on the sale

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Reference no: EM132512721

Question 1: Just over six years ago, Amazon introduced a new tablet, the Kindle Fire. Its initial sale price was $199 per unit and the variable cost of manufacturing it was $307 per unit, thus the contribution margin was a negative $108 per unit. Why was Amazon willing to lose money on the sale of each Kindle Fire?

Reference no: EM132512721

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