| Despite their low profit margins, mass market paperbacks remain an important segment of the book industry. For example, two-thirds of Random House’s income comes from paperbacks. A Random House paperback, retail priced at $10, breaks down this way: | |
| Author royalty | $1.50 |
| Publisher’s costs | $2.00 |
| Paper, printing, and binding | $1.00 |
| Retailer | $5.00 |
| Publisher profit | $.50 |