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<p>[QUOTE="Phil Ham, post: 754796, member: 5787"]You might be right about the cents but they are far outweighed by the other ones (check out coinflation.com). I'm also a little curious about the production costs at the mint. If it is like other businesses, you have to allocate indirect costs across the entire volume of product line. If they stop minting the cents, many of those costs will move to the other coins making them more expensive to produce. Lets say that they make 9 billion cents a year. It costs them $0.0061/cent in RM costs. They now have $0.0039/cent in production and indirect costs. The production and indirect cost are now $35 million. They will only lose money on the cents if they stop making them and the actual cost savings is over $35 million. If it is like the business that I'm in, much of the costs will not go away but transfer to the other products (nickels, dimes, quarters, etc.).[/QUOTE]</p><p><br /></p>
[QUOTE="Phil Ham, post: 754796, member: 5787"]You might be right about the cents but they are far outweighed by the other ones (check out coinflation.com). I'm also a little curious about the production costs at the mint. If it is like other businesses, you have to allocate indirect costs across the entire volume of product line. If they stop minting the cents, many of those costs will move to the other coins making them more expensive to produce. Lets say that they make 9 billion cents a year. It costs them $0.0061/cent in RM costs. They now have $0.0039/cent in production and indirect costs. The production and indirect cost are now $35 million. They will only lose money on the cents if they stop making them and the actual cost savings is over $35 million. If it is like the business that I'm in, much of the costs will not go away but transfer to the other products (nickels, dimes, quarters, etc.).[/QUOTE]
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