Contents Part A Reduction of prices is offered by each merchandiser of the supply chain. Therefore consumers are attracted by those opportunities to be able to save their money. However, sometimes a discounted price is discounted again (and again). This process can be repeated as much as the merchandiser is ready to accept keeping always in consideration a satisfactory level of markup. In the other hand, businesses are often granted a nice reduction in the price of items purchased if they place larger orders for goods. Read the above statement and answer the following: 1- Explain the types of discounts presented in the above statement. 2- Discuss the methods that can used to specify the markup of a merchandiser. Part B I A value-added tax (VAT) is a consumption tax on a product whenever value is added at each stage of the merchandising chain, from the manufacturer to the consumer. It is applied on diverse kinds of products in many countries.