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I found this today online. Thanks!!!!
Acquisition Price
The acquisition price is set by the producer of liquor (with approval by the MLCC) and is what the MLCC as the state wholesaler pays. Our example uses a 750 milliliter bottle. The price is established on a per case basis and is public information. A case of Bottle X costs the state $229.76—and contains 12 bottles, each costing $19.15.
Base Price
The base price is the acquisition price plus a 65 percent markup applied by the MLCC.2 In the process of establishing the base price, the MLCC converts the per case acquisition price to a per bottle price and utilizes a rounding formula. In our example of Bottle X, this conversion results in a bottle price of $31.60. The base price is significant for a number of reasons beyond the 65 percent markup that goes to the MLCC:
2 MCL
1. The base price is used to calculate a number of state taxes that are applied to each bottle of liquor sold in the state. These taxes are generally called the “four specific” liquor taxes:
4% convention and facilities3 (base price x 4%) or $31.60 x .04 = $1.26
4% School Aid Fund4 (base price x 4%) or $31.60 x .04 = $1.26
4% General Fund5 (base price x 4%) or $31.60 x .04 = $1.26
1.85% substance abuse tax6 (base price x 1.85) or $31.60 x 1.85 = $0.58 (off-premise only)
The total taxes on Bottle X are $4.36
2. The base price is also used to calculate the minimum licensee profit, or “licensee discount” (base price x 17%7). In this case, the licensee discount on a bottle of Bottle X is $31.608 x 17%, or $5.37. In other words, on off-premise licensee pays the state $35.96 - $5.37, or $30.59, for each bottle. Since on-premise licensees do not have to pay the 1.85% substance abuse tax (they must, however, pay the other three specific liquor taxes), an on-premise licensee pays the state $30.01 for each bottle of Bottle X.
Out of the 65 percent markup that goes to the MLCC, the MLCC pays for administrative operations, the licensee discount (in this example $5.37), and the state’s share of the ADA fee (in this example, $0.69 per bottle). After deducting the licensee discount and the state’s share of the ADA fee, but prior to deducting its administrative expenses, the MLCC share of Bottle X equals $6.38.
http://www.pscinc.com/LinkClick.aspx?fileticket=jVA9MaBpFUc%3D&tabid=65