The United States Mint reported at the end of 2006 that the unit cost of producing and distributing a penny was 1.21 c. What percent of the value of a penny is this cost? What can you conclude about the cost of making pennies?
• How can a model help you to visualize the problem?
• How can you use a proportion or the percent proportion to solve the problem?
(1.21/1.00)100 = 121 %
It costs more to make it than it is worth.
To find the percent of the value of a penny that is accounted for by the production and distribution cost, we can use a proportion.
Let's consider the given information: the unit cost of producing and distributing a penny is 1.21 cents.
To determine the percent, we need to compare this cost to the actual value of a penny. In this case, the value of a penny is 1 cent.
To set up the proportion, we can assign variables as follows:
Let x be the percent we're trying to find.
Since the unit cost is given in cents, we'll use 1.21 cents in the proportion.
The proportion will be:
(x / 100) = (1.21 / 1)
To solve for x, we can cross-multiply and solve for x:
x = (1.21 / 1) * 100
x = 121
Therefore, the unit cost of producing and distributing a penny comprises 121% of its value.
Now, let's move on to the second part of your question. Based on this information, we can conclude that the cost of making pennies exceeds their face value. The unit cost of 1.21 cents is greater than the face value of 1 cent, indicating that it costs more to produce and distribute a penny than it's actually worth.