New Jersey Administrative Code
Title 2 - AGRICULTURE
Chapter 53 - STORES
Subchapter 6 - SALES BELOW COST; STORES
Section 2:53-6.2 - Variable cost defined
Current through Register Vol. 56, No. 18, September 16, 2024
(a) Except as hereinafter provided, the term "variable cost" as used in this subchapter shall include the net invoice cost of the milk and milk products plus all other variable costs related to the sale of milk and milk products. Such costs will be determined in accordance with generally accepted accounting principles and be allocated proportionately to each unit of product sold. These costs shall include labor, receiving, cooling, storing, selling, distributing, maintenance, delivery, gifts, and free service allocated to each unit of product sold. Not included in these costs are salaries of those engaged in administrative functions, office expenses, interest, rent, depreciation, license fees, taxes, insurance and advertising.
(b) In the absence of proof of a smaller amount, a store may add (as a proxy for total variable cost) five percent of the net invoice cost to determine the lawful selling price for milk and milk products. Also, pursuant to 2:53-6.1, a store may meet any price or offer of a competitor.
