How much does it cost for a cigarette manufacturer to produce one cigarette?

Answer 1

About US$0.062 per cigarette.

Naturally, cigarette costs are going to vary depending on quality and more specifically - location - due to taxation issues.

However, let's take a specific example. Phillip Morris, the maker of Marlboro and other, cigarettes manufactured 831.4 bn cigarette equivalents in 2006 (see annual report page: 11 here:
http://www.altria.com/download/pdf/investors_AltriaGroupInc_2006_AnnualRpt.pdf )

Their tobacco division had revenues of about US$66.7b dollars and operating profits of about US$13.3b (page 3). This means that the operating costs (revenues less operating profits) was about US$53.4b for the cigarette division.

Divide the costs per cigarettes (US$53.4b/831.4b) = 6.2 cents per cigarette.

Answer 2

A few years ago I saw a TV show that explained it costs about 2 cents to produce one pack of cigarettes. So $0.001 per cigarette is about right.

Answer 3

Per pack cost : 27 - 35 cents a pack.
RJ Reynolds price to dealer 63 - 87 cents a pack.
Average store profit $1 the rest is tax.

Source: have worked for rjr since 1982.

Answer 4

it doesnt matter what the cost is. with excise and maufacturing and all other taxes the government collects from $3. to $12.per pack. far more than phillip morris and others collect. they are machiavellian in the rhetoric. smoking is bad for us, but good in a way for them in generating revenue.

Answer 5

probably about 1/1000 of a cent.

Answer 6

About 185 Million dollars....the second one will be a lot less..those machines are really expensive.

Answer 7

A lot less that it costs to treat lung cancer.

Answer 8

$8.00

Answer 9

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