CASE 3 Woodlands Restaurant widely recognized for its famous dishes and a track record spanning more than 3 decades in the Sultanate. The restaurant has enjoyed immense popularity among food connoisseurs, particularly among expats. It is also the perfect family restaurant where patrons love the service coming straight from the heart. After graduation Mr. Ali joined as a purchasing officer of the restaurant. The business is getting good customer support throughout Muscat. Due to the decline in demand caused by the epidemic, the restaurant is proposing measures to cut cost. The manager asked Mr. Ali to look for a cheaper source of raw materials. The restaurant always avails of trade and cash discount. Mr. Ali decided to call the suppliers and gathered the following data; A. Spar Darsait - offers chain discount of 14/7/3. B. Badriya Foods and Trading Enterprises- offers Single Equivalent Discount series of 7.5%, 9.5%, and 2%. Question No-3 i) The restaurant decides to buy foodstuff worth OMR 4,500 from Spar Darsait , how much will be the discount? How much does it cost the restaurant? (3 Marks) ii) When the Restaurant wants to buy OMR 4,500 of Badriya Foods and Trading Enterprise's groceries, how much the restaurant will pay? (3 Marks) iii) Which one of the above two companies is giving more discount? Why? Justify your answer. (2 Marks) iv) A retailer from Ibra, purchased 200 units of a stationary item from Badriya Foods and Trading Enterprises costing OMR 3 per unit (excluding VAT). The Badriya Foods, on the other hand, bought the same item from a manufacturer, paying OMR 2.5 per unit. VAT is paid extra. Rate of tax is 8%. Compare input tax and output tax. (2 Marks) Page 517