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Okay, so your host ends up with $115 in free product, 2 half price items and a 25% discount on anything else.
She cannot use her credit to puchase the half-price items, she must pay cash for these.
So, let's say her wish list comes to $125 - she uses her credit, which leaves her a balance of $10. She get's 25% off this. She gets the 25% off everything she purchases above and beyond the $115.
Then she has the two half price items.
Hope this makes sense to you.