Retailer to Consumer Cigarette Minimum Price Calculation

1. Multiply the wholesaler to retailer purchase price from your invoice by the 8 percent retailer cost of doing business minimum markup.
2. A fractional part of a cent equal to one-tenth of a cent or more in the result of step 1 must be rounded off to the next highest cent.
3. Add the result from step 1 to the wholesaler to retailer purchase price.
4. The result of step 3 is the minimum price that you may sell to consumers.

Example:

$ 34.31  Purchase price per carton

X    .08  Cost of Doing Business markup (8 percent)

$ 2.7448

$ 34.31   Purchase price per carton

+  2.75   Result from step 1

$ 37.06   Minimum retailer to consumer selling price per carton

Additional Links: Cigarette Sales Below Cost Act