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It costs 7 cents to mint a nickel. Scientists may have a solution
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<p>[QUOTE="justafarmer, post: 3121448, member: 3926"]Do people not understand when looking at the per unit cost of producing a coin - such as the nickel or cent - included in the cost of producing that coin is its share of the general operating cost of the Mint itself. Costs the Mint will continue to incur whether these coins are produced or not. And if not produced these cost will allocated across all the other coinage being produced - causing their per unit cost of production to increase. </p><p><br /></p><p>The accounting method used to allocate these sunk cost to the production of different coinage and how much the production of the nickel and cent absorb - I don't know. If these costs are allocated based on the number of units produced - the cost absorbed could be significant. If allocated based on monetary value - not so much.[/QUOTE]</p><p><br /></p>
[QUOTE="justafarmer, post: 3121448, member: 3926"]Do people not understand when looking at the per unit cost of producing a coin - such as the nickel or cent - included in the cost of producing that coin is its share of the general operating cost of the Mint itself. Costs the Mint will continue to incur whether these coins are produced or not. And if not produced these cost will allocated across all the other coinage being produced - causing their per unit cost of production to increase. The accounting method used to allocate these sunk cost to the production of different coinage and how much the production of the nickel and cent absorb - I don't know. If these costs are allocated based on the number of units produced - the cost absorbed could be significant. If allocated based on monetary value - not so much.[/QUOTE]
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It costs 7 cents to mint a nickel. Scientists may have a solution
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