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Actually I am remembering this now and I left out something from this spreadsheet… The original cost of the items they purchased before they upgraded, i.e. the soft drink or the 2D ticket. I’ll have to track down the numbers now. Here’s what I did to calculate though (using the soft drink upsize example) – I took the total profit that the movie theater would have made if the customer bought the soft drink AND paid for the upsize. Then I assumed the customer used the upgrade credit from the rewards program (worth $0.033), meaning the movie theater did not collect the extra margin. The difference in margin between what they movie theater would have collected and what they gave to the customer as a reward was just 1%. Thanks for the question. Now I see I’ll need to update the article.