Reimbursement provided to schools should be maximized in order to reduce the cost of milk to students. It is recommended to charge the difference between the anticipated per half-pint milk cost and the reimbursement rate. Consider adding on 2 cents to cover any milk price adjustments and administrative costs associated with SMP.
$____ (half-pint cost) + 2¢ – $____ (reimbursement) =
$____ (half-pint price) X 180 days =
$____ (annual charge)
Note: This formula only applies to schools participating in one of the pricing options. Documentation must be maintained to justify milk price adjustments and administrative costs greater than 2 cents.