(1) The retail selling price of liquor, other than fortified wine, as defined in 16-1-106, MCA, is determined by adding:

(a) the department's base case cost; and

(b) the state mark-up of 40% on the department's base case cost.

(2) The retail selling price of fortified wine containing more than 16% but no greater than 24% alcohol by volume is determined by adding:

(a) the department's base case cost; and

(b) the state mark-up for fortified wine bottled in the following sizes:

(i) 1.50 liter is marked up at 42% on the department's base case cost plus 27 cents per bottle;

(ii) 1.0 and .750 liters are marked up at 51% on the department's base case cost plus 12 cents per bottle;

(iii) .375 liter is marked up at 59% on the department's base case cost plus two cents per bottle.

(c) Fortified wine bottled as .720 liter is marked up the same as .750 liter.

(3) For liquor and fortified wine, the cost to the retail purchaser is the retail selling price plus applicable state taxes as provided in Title 16, chapter 1, part 4, MCA, the total of which is rounded up to the nickel.

(4) The department may reduce the retail selling price of products which the department has designated for closeout or are determined to be overstocked in order to encourage their purchase and elimination from the state inventory. Closeout products are those that the department has removed from its published listing of classes, varieties, and brands of liquor to be kept for sale at any state agency liquor store. Overstocked products are those classes, varieties, and brands of liquor which are in the state's inventory in an amount greater than would be sold in a 12-month period.