2006-06-13 03:33:50 · 4 answers · asked by Joel M 2 in Business & Finance ➔ Small Business
I'm currently working as a products consultant for a large cigarette manufacturer and as far as raw materials and overhead go a pack only costs the company 20-50 cents to make depending on the brand and packaging. If you strip off all the taxes and look at the wholesale price the profit is around 1 - 1.50 dollars per pack. So the profit margin is quite high. When you add in all the taxes and regulatory fees the tobacco company pays it cuts it down a good bit but it's still a large profit per pack. By the time it gets to the consumer it has been resold often multiple times ( to a distributer who jacks up the price when they sell it to a supplier who jacks up the price when it goes to the vendor) before it gets to the consumer who pays additional money in state and federal tobacco taxes.
2006-06-13 09:19:48 · answer #1 · answered by coxdebate 2 · 2⤊ 0⤋
26%
2006-06-13 10:36:35 · answer #2 · answered by K G 1 · 0⤊ 0⤋
4 SMOKERS -200%... :-(
& 4 THE COMPANY... A LOTT!
2006-06-13 10:37:40 · answer #3 · answered by Liana 2 · 0⤊ 0⤋
Nothing really.
2006-06-13 10:36:20 · answer #4 · answered by Da Great 1 6 · 0⤊ 0⤋