The mark-up, or operating cost percentage, is comprised of those supplemental costs added to the base cost of goods, either purchased for resale or manufactured for sale, to determine the sales price recharge operation users must pay. Supplemental costs include expenditures such as the labor and supply costs incurred for inventory control.

The Rate Worksheet should be used to calculate the sales price (i.e., rate) of its goods or services for FY 200C. It is based upon knowledge of estimated expenditures and sales volume at the time of preparation. The recharge operation is encouraged to update its sales prices throughout the fiscal year to reflect improved knowledge about these estimates.

It is difficult to say which worksheet, budget or rate, should be prepared first. Both contain information needed before the other worksheet can be completed. For example, estimated revenues cannot be calculated without first knowing the sales prices of the goods for resale. It is recommended that both worksheets be prepared interactively, starting first with the Budget Worksheet.

Please submit the completed worksheet to the Comptroller's Office Manager of Current Unrestricted Fund Accounting. If a similar worksheet is already prepared as a part of the Division's annual budgeting process, it may be substituted. Please, double-check the substitute worksheet to insure that all information requested is provided. Note: If the rates you plan on charging users differ from what you calculate in this workpaper, include a listing of those rates with the workpapers. Also include a written discussion of the reason for the difference.