Question

Maximum allowable post manufacturing expenses (mape) equation

Answer 1

hope it works friend

Answer 2

Answer:

Concept:

Calculation of Maximum allowable post-manufacturing expenses (mape) equation from Retail Price equation.

Explanation:

The retail price of a formulation is calculated by the Government using the following formula.

R.P. = (M.C + C.C. + P.M. + P.C.) x (1 + MAPE/100) + E.D.

Where,

R. P. = retail price

M.C. = Material cost and includes the cost of drugs and other pharmaceutical aids used including, overages and process loss specified as a norm from time to time.

C.C= Conversion cost worked out in accordance with established procedures of costing and fixed as a norm every year.

P.M. = Cost of packing material of formulation including, process loss and shall be fixed as a norm every year.

P.C. = Packing charges worked out in accordance with established procedures of costing and fixed as a norm every year.

MAPE = (Maximum Allowable Post-manufacturing Expenses) - All costs incurred by the manufacturer from ex-factory to the retailing stage and includes, the margin for manufacturer and trade margin and it shall not be more than one hundred percent for indigenously manufactured Scheduled formulation.

E.D. = Excise duty to be paid.

#SPJ3