Determination of MRP

[kanika jain]

We are producing some consumable product in India and the same is sold nation wide (India) through different channels like distributors, branches, retailers.Thus the same will be subjected to different rates of sales taxe . Please suggest some model to determine the MRP in this case.

[CASeetharaman KC]

Having different MRP's for different states is very much permissible and is justified also as transport costs, loading, unloading and storage costs would vary. The best way to determine MRP's would be to arrive at the MRP at the production place first and then load the extra costs to this price to arrive at MRP's at various locations

AI Summary

Different MRP levels permissible; compute a base production MRP then add location-specific transport and handling costs. It is permissible to fix distinct MRPs for different states where transport, loading, unloading, storage costs or differing sales tax burdens change landed cost. Compute a Base Production Price and add incremental location-specific costs to arrive at the MRP for each distribution destination.