Code of Maine Rules › 01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY › 015 - MAINE MILK COMMISSION › Chapter 20 - PREVENTION OF DESTRUCTIVE COMPETITION › Section 015-20-VI - COST OF MILK TO A RETAIL STORE

Current through 2024-29, July 17, 2024
A. Overview. The
				cost of milk to a retail store consists of the price paid by the retail store
				to the dealer for the regulated product, plus the retail store's expenses
				directly and indirectly incurred in shipping, handling and selling the
				regulated product. Examples of a retail store's expenses directly and
				indirectly incurred in shipping, handling and selling a regulated product are
				set forth in Section I(C). The expenses directly and indirectly incurred by a
				retail store in shipping, handling and selling the regulated product may be
				determined by the Commission on the basis of the retail store's actual expenses
				as calculated under subsection B or, unless the retail store proves lower
				actual costs, on the basis of its imputed expenses as calculated under
				subsection C or D.
B. Actual
				Expenses.
The Commission may determine a retail store's expenses
				  directly and indirectly Incurred in shipping, handling and selling milk
				  according to the retail cost accounting system for milk sales developed by the
				  Edward B. McClain Company, Inc. for the Commission in October, 1981. Upon
				  request of the Commission, and within the time set by the Commission, the
				  retail store shall prepare and file the McClain System (retail) reporting forms
				  covering such periods of time as the Commission may designate.
NOTE: The five pages of reporting forms which comprise the
				  McClain Retail Cost Accounting System for Milk Sales are attached hereto as
				  Exhibit A. Alternatively, a retail store may submit a determination of its
				  expense by a cost accounting system other than the McClain System and request
				  that the Commission use such other system to determine the store's expenses. A
				  retail store submitting a determination of expenses by a cost accounting system
				  other than McClain must demonstrate, and the Commission must find, that the
				  cost accounting system is regularly used by the store in the conduct of its
				  business, that it is based on generally accepted cost accounting principles and
				  that it is at least equivalent to the McClain System in comprehensiveness and
				  reliability as to expenses incurred in selling milk. Where these findings are
				  not made, the retail store shall prepare and file, within the time set by the
				  Commission, the McClain (retail) reporting forms covering such period of time
				  as the Commission may designate. Where these findings are made, the Commission
				  will rely on the system submitted by the retail store as providing the
				  appropriate demonstration of the retail store's actual expenses.
C. Imputed Expenses Based on
				Retail Margin.
1. The Commission may
				determine a retail store's imputed expenses directly and indirectly incurred in
				shipping, handling and selling of milk by multiplying the retail store's
				selling price by that percentage shown in Table III which most closely
				corresponds to the purchase price paid by the retail store to the dealer for
				the regulated product.
2. Any proof
				of actual costs lower than the imputed expenses of shipping, handling and
				selling the regulated product as determined by the Commission under this
				subsection shall be made by the retail store in the manner provided in A. for
				the determination by the Commission of actual expenses of retail
				stores.