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<p>[QUOTE=&quot;Apocalypse Cow, post: 1101912, member: 24651&quot;]Interesting. Lets do some quick back of the napkin math to see it cladkings statement here could be accurate. So lets look at the labor cost of actually having a cashier conduct a sale including pennies.</p><p><br /></p><p>With a federal minimum wage of 7.25$ an hour a cashier is paid one penny in 5 seconds so obviously if it takes longer than that to place a penny in the till from the customer or to fetch a penny from the till when making change it costs more to the business in pay for the cashier than they take in from the transaction.</p><p><br /></p><p>If we assume that on average 2.5 pennies are used per transaction the break even time rises to 12.5 seconds.</p><p><br /></p><p>Now a penny paid to the employee is not the same as a penny taken in. The penny taken in revenue also has to pay for the penny for the employee, raw materials, taxes, utility bills, leases and so on. Adjusting the 12.5 seconds based on the profit margin of 20% which is what McDonalds runs at gives us a break even time of 2.5 seconds. My guess is McDonalds still turns a profit using the penny. But for a company like WalMart with a profit margin of 3.6% if the time added to the transaction from using pennies is .45 seconds or longer they are actually paying the cashier more then the pennies the cashier exchanged.</p><p><br /></p><p>Obviously there are tons of other factors that would change these numbers but I think the jist of what cladking said is correct. In a lot of transactions using a physical penny could actually cost more.[/QUOTE]</p><p><br /></p>

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