SPIRO T. AGNEW, Governor                       643

118.

[b]  (a) "Basic cost of cigarettes" means the invoice cost of
cigarettes to the retailer or wholesaler as the case may be or the
replacement cost of cigarettes to the retailer or wholesaler (i.e., the
cost for which cigarettes could have been bought by the wholesaler
or retailer at any time within 30 days prior to the date of sale by
the wholesaler or retailer if bought in the same quantity as the last
purchase made by him), whichever is lower, plus in-freight charges
to the wholesaler not otherwise included in invoice or replacement
cost, less all trade discounts and discounts for cash. [, plus cartage
to the retailer if done or paid for by the wholesaler or the retailer
as the case may be. In the absence of satisfactory proof of a lesser
amount, cartage shall be presumed to be three-fourths of one per
cent, of the sum of invoice cost or replacement costs, whichever is
lower, as aforesaid, plus in-freight charges as aforesaid, if any,
minus all trade discounts for cash.]

[a] (b) "Cost of the wholesaler" means the basic cost of cig-
arettes to the wholesaler plus a mark up to cover the cost of doing
business by the wholesaler including cartage to the retailer plus the
full face value of any cigarette taxes payable by the wholesaler on
the cigarettes sold. In the absence of satisfactory proof of a lesser
cost of doing business by any wholesaler, his cost of doing business
shall be presumed to be [four] five per cent [,] of the basic cost of
cigarettes to him. Any fractional part of a cent, amounting to one-
tenth, of a cent or more, in the cost [to] of the wholesaler per
carton of ten packages [(or per unbroken case of a single brand
sold in case lots by the wholesaler to any single retailer)] shall be
rounded off to the next higher cent.

(c)   Cost [to] of the retailer, means the basic cost of cigarettes to
the retailer, which shall include "cost of the wholesaler" as defined
in Section 118 (a) above, plus a mark up to cover the cost of doing
business by the retailer. In the absence of satisfactory proof of a
lesser cost of doing business by any retailer, the cost of doing busi-
ness by the retailer shall be presumed to be 8 per cent of the basic
cost of cigarettes to the retailer. Any fractional part of a cent per
carton of ten packages amounting to one-tenth of a cent or more in
the cost to the retailer as aforesaid shall be rounded off to the next
higher cent.

119.

(a) In any sale of cigarettes at wholesale on a cash and carry
basis (i.e., where cigarettes are not delivered unless the full price
thereof is received by the seller at or before delivery and where
the purchaser performs or pays for the cartage of the cigarettes to
the purchaser's place of business), the presumptive wholesale markup
of [four] five per cent [.] provided in subsection [a] (b) of Section
118 of this Article may be reduced by two cents for each carton con-
taining 200 cigarettes, [to not less than 3¾%         ]

(c) Any vending machine operator, as herein defined, and any
retailer who purchases cigarettes at prices ordinarily invoiced to a
wholesaler and receives the wholesaler's discounts thereon, shall first
add to his basic cost of cigarettes the [four] five per cent [.]
markup to cover the cost of doing business as a wholesaler, plus the