Subwholesaler to Retailer Cigarette Minimum Price Calculation

1. Multiply the wholesaler to subwholesaler purchase price from your invoice by the current approved cost of doing business percentage.
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 subwholesaler purchase price.
4. The result of step 3 is the minimum price that you may sell to your licensed retailers.

Example:

$ 34.00   Purchase price per carton

X .0052   Cost of Doing Business percentage

$ .1768 (.18) 

$34.00   Purchase price per carton

+   .18   Result from step 1

$34.18   Minimum subwholesaler to retailer selling price per carton

Additional Links: Cigarette Sales Below Cost Act