(a) For the purposes of AS 43.50.710 — 43.50.849, 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 AS 43.50.710 — 43.50.849, 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.