Big Life Cinema (BCLC) is an exclusive movie theatre in Pretoria. You are the accountant for the registered VAT vendor.
In the month of October 2014, BCLC decided to run a promotion campaign on a daily basis. BCLC will give free gifts (freebies) in the form of snacks and soda to movie theatre-goers, based on the number of pre-booked tickets sold per day for every movie. For example, Thirty (30) tickets sold for the movie, Tsotsi, for 10 October 2014 will entitle all theatre-goers with pre-booked Tsotsi tickets for 10 October 2014, to a free soda upon their arrival at the theatre.
BCLC feels strongly about supporting locally produced movies. They, therefore, decided to grant 5% trade discount on every pre-booked movie ticket purchased for a locally produced movie to encourage theatergoers to support South African movies.
The manager requested you to complete a spreadsheet to enable them to see what free gifts should be available every evening.
You have the following information at your disposal for 10 October 2014.
a) The Value Added Tax (VAT) percentage is 14% (Refer to cell B12)
b) The markup margin is 23% (Refer to cell B13)
c) The free gifts (freebies) to be handed out every day when a certain range of pre-booked tickets are sold per movie per day.
Number of pre-booked tickets sold
FROM | TO | Number of pre-booked tickets sold |
---|---|---|
01 | 29 | No freebie |
30 | 49 | Soda |
50 | 69 | Chocolate and soda |
70 | 100 | Chocolate and popcorn |
101 | 120 | Soda, popcorn and key ring |
d) The movie code includes information indicating whether a movie is locally produced (“LOC”) or internationally
produced (“INT”). Refer to the e) below for more information.
e) The movie codes for all movies shown during the week. The movie code (refer to row 18) is structured as follows:
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 |
---|---|---|---|---|---|---|---|---|---|---|
1 | 2 | 3 | 4 | X | X | X | A | B | C | D |