(a) For the purposes of Alaska Stat. § 43.50.71043.50.849, the department shall determine the minimum price for which a wholesaler may advertise, offer to sell, or sell cigarettes at wholesale by applying the following formula:

Wholesale Minimum Price = 1.02(M – D + T),

where M = the manufacturer’s list price;

D = trade discounts; and

T = the full face value of all cigarette taxes.

(b) For the purposes of Alaska Stat. § 43.50.71043.50.849, the department shall determine the minimum price for which a retailer or wholesaler may advertise, offer to sell, or sell cigarettes at retail by multiplying by 1.04 the wholesale minimum price determined under (a) of this section.