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Retailer to Consumer Cigarette Minimum Price Calculation

  1. Multiply the wholesaler to retailer purchase price from your invoice by the 11% 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:
$ 34.11  Purchase price per carton
X    .11  Cost of Doing Business markup (11%)
$   3.76
$ 34.11   Purchase price per carton
+  3.76    Result from step 1
$ 37.86   Minimum retailer to consumer selling price per carton

 



 
Links for Cigarette Sales Below Cost Act
Business Tax Types
Tobacco Tax
Tax Information
Cigarette Sales Below Cost Act
  Retailer to Consumer Cigarette Minimum Price Calculation
  Wholesalers Cigarette Cost of Doing Business
  Subwholesaler to Retailer Cigarette Minimum Price Calculation
 
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