Statutes, codes, and regulations
Maine Administrative Code
Department 01 - DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRYDivision 015 - MAINE MILK COMMISSION
Chapter 20 - PREVENTION OF DESTRUCTIVE COMPETITION
Section 015-20-VI - COST OF MILK TO A RETAIL STORE

01- 015 C.M.R. ch. 20, § VI

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Current through 2024-51, December 18, 2024
Section 015-20-VI - COST OF MILK TO A RETAIL STORE
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.
D. Imputed Expenses Based on Storewide Expenses.

The Commission may determine a retail store's imputed expenses directly and indirectly incurred in shipping, handling and selling, dividing store expenses incurred in shipping, handling and selling milk for a relevant period of time by store sales of milk for the same time period and by multiplying the percentage so obtained by the retail selling price under investigation. Upon request of the Commission, and within the time set by the Commission, the retail store shall furnish expense and sales information covering such periods of time as the Commission my designate. 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.

01- 015 C.M.R. ch. 20, § VI