Wesley has opened a small cinema with 200 seats. It has 14 movie showings per week. There is a 45% average attendance with a ticket price of $6.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

1. [4] Answer = $7560 (4)
2. [1] Method = 14 × 200 = 2800 (1) 45% × 2800 = 1260 seats sold (1) × $6 (1)
3. [1] OR = 45% × 200 = 90 (1) × 6 (1) = 540 (1) × 14
4. [1] OR = 45% × 200 = 90 (1) × 14 (1) = 1260 (1) × $6
5. [1] Free offers / offers or example such as free tickets on purchasing 4 tickets
6. [1] Free showings
7. [1] Discounts or an example such as money-off tickets for students on Tuesday night, lower price on Saturday
8. [1] Loyalty cards / collect points or example collect points for a free drink
9. [1] Competition /lucky draw or example such as win six months free cinema membership
10. [1] Special offers / BOGOF deals or example such as two for one ticket, 2 popcorns get one drink free
11. [1] Product-bundle/combos or example such as buy drink, chips and a snack at a lower price
12. [1] Gift or an example such as watch a movie and get a free drink or get a free poster
13. [1] Coupon or example such as money off popcorn on your next visit
14. [1] Seasonal promotion or example such as paying less on Halloween
15. [1] Point of sale
16. [1] Loss leaders
17. [1] Early bird offers.
18. [1] Yes – less cash handling (1) lowers administrative costs (1) reduces risk of theft (1) hard to trace / track missing money (1) no need to transport cash to the bank (1) staff would have to count / process cash (1) incorrect counting of money (1) would cause more administration / paperwork (1) saves time/money (1) no need to store cash / have cash on premises (1) better security/lowers security costs (1) debit cards / credit cards allow immediate transfer of money (1) quicker at checkout / ticket office (1) some other payment methods can take longer / be more costly to process (1) e.g. taking a cheque (1) could lead to bad debts (1) sometimes fake notes are presented (1) some businesses do not accept cash / less common to accept cash (1) having a cashless society is the trend. (1)
19. [1] No - Tickets are quite cheap (1) some people prefer cash for a low amount/small payment (1) Wesley does not want to wait for payment/it is immediate (1) compared to offering credit (1) do not want to pay for credit card charges (1) cash helps Wesley's cash flow (1) cash is legal tender (1) can be accepted everywhere / cannot be refused (1) may mean lost business by refusing to accept cash / consumers cannot pay a ticket (1) from people without credit / debit cards / mobile wallet / online access to pay for tickets (1) e.g. Children / teenagers (1) some people only carry cash / some people/teenagers prefer to pay by cash (1) may not like the idea of paying by card (1) could lead to decreased sales / lose customers. (1)
20. [6] Up to 2 marks for describing credit cards
21. Up to a further 2 marks for analysing the advantages and disadvantages of paying for tickets and other goods by credit card
22. Up to a final 2 marks for evaluating whether the advantages of paying by credit card outweigh the disadvantages
23. [1] Convenience / easy to pay / store – using a credit card lets a customer buy now, pay later
24. [1] Spread out the costs – If a customer needs to make a large purchase, a credit card lets them pay over several monthly instalments. This can help with budgeting and increase their standard of living
25. [1] Interest-free credit - if full amount paid on credit card statement
26. [1] Can use it to obtain money from ATM – in an emergency
27. [1] Can pay online at home saves money/time going to ticket office
28. [1] Flexible can be used in variety of stores anywhere
29. [1] Purchase protection – Sometimes there could be a problem with a purchase such as it might get lost or damaged, for example, or the company could even go bankrupt. With credit cards, a customer will have buyer protection so they can claim their money back from the card provider if there's an issue with their goods or services
30. [1] Cashback and rewards – customer could be getting discounts / air miles or similar shopper loyalty points each time they use their card, or cashback on purchases
31. [1] Accepted worldwide in most outlets so customers can use it in most places
32. [1] Safer to carry credit card than to carry money so reduces theft.
33. [1] Disadvantages
34. [1] Getting into debt – If a customer can't pay back what they borrow, their debts can increase
35. [1] The rate of interest is high – than for other forms of credit such as bank loans so it can be an expensive method of credit if not paid back within due date
36. [1] Customer may be tempted to impulse buy and spend more than they should, so being unable to pay off the credit card debt at the end of the month
37. [1] Damaging their credit – missing a payment on their card can damage their credit rating. This can make it harder to get credit in the future
38. [1] Extra fees - Credit card providers might charge a customer extra for things that are free with a debit card, such as withdrawing cash from an ATM or buying goods or services overseas
39. [1] Fraud - they can be hacked / stolen and used to pay for goods with credit cardholder liable for losses
40. [1] Security measures – may have to input a code to make a payment delaying your time
41. Evaluation: A customer needs to maximise the advantages of a credit card and minimise the disadvantages by making sure that they pay off the balance each month and don't miss, or make late, payments so that their credit score is protected and there is no interest to be paid. Otherwise, this can lead to a higher debt and be costly.