Question: Refer to the pricing waterfall chart in
Refer to the pricing waterfall chart in Exhibit 6-4. 
Required (a) What circumstances result in firms often failing to be aware of all of the discounts and allowances granted on a customer order? (b) Once a firm becomes aware of pricing waterfalls leading to undesirably large sales discounts, what steps might the firm take to manage discounts with more discipline?
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Exhibit 6-4 Pricing Waterfall Chart (Dollars per square yard) $105 2.00 Order Size 3.00 18% S100 Competitive Discount 2.00 Off-Invoice Рayment Terms Discount 5.00 Annual Discount 4.00 Volume Bonus Co-op Advertising Promotional 5.00 Allowance 2.00 $82.00 Allowance Freight Dealer Actual List Invoice Net Price Price Price
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