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Delta Manufacturing, a VAT-registered producer, sells to Delta Distributors, a VAT-registered wholesaler, for 2,400 net. VAT at 12% is charged, so Delta’s output VAT is 288 and the price to Delta Distributors is 2,688. Delta Distributors resells to MegaMart, a VAT-registered retailer, for 4,500 net; VAT at 12% is charged (output VAT 540), price to MegaMart is 5,040. MegaMart then sells to Davao City, a non-VAT end consumer, for 6,400 net; VAT at 12% (output VAT 768) is charged, final price to Davao City is 7,168. (a) Identify the statutory incidence and the economic incidence of VAT in this chain. (b) Who bears the ultimate economic burden, and why? (c) If Delta Distributors negotiates a 6% discount on the net price with Delta Manufacturing and passes 30% of that discount to the end consumer, explain how this affects the incidence and the final price Davao City pays.