0MANAGEMENTCONSULTINGPREP©2014MConsultingPrep,Inc.1CitySkatingRinkFoundedduringthe1950s,CitiSkatingRinkisasoleproprietorshiprollerhockeyskatingrinkwithacapacityof500people.Therinkisopenyear-roundwiththeexceptionofmajorholidays.CitiSkatingRink’sincomeisgeneratedthrough3revenuesources:RollerHockeyLeague,PublicSkatingandSkatingbar&Souvenir.RollerHockeyLeague:AlthoughCitiSkatingRinkisasiteforroller-skating,therinkhasafocusonorganizingregularrollerhockeyleaguesforadultsfrom18andabove.TheleaguesareheldyearroundwithgamesfromSundaythroughThursday.Participatingteamshaveseveralpaymentoptionsavailable,ofwhichthecheapestoptionistopayaflatfeeatthebeginningofthegameseasontocoverallplayers.PublicSkating:OnFridaysandSaturdays,CitySkatingRinkhostsdiscopublicskatingfrom2:30pmto8:00pm.Skatersreceivegreatvaluefor$9.95feethatincludesadmission,skaterental,ahotdogandasoda.SkatingProShop:CitiSkatingRinkhasaproshopthatsellshockeysuppliesandequipmentsuchashockeyjerseys,sticksandpucks.Additionally,theproshophasreplacementpartsforskatesforsale.Theshopalsoprovidesrepairserviceswhenneeded.TheownerofCitiSkatingRinkhasnotimplementedanyrecurringorsignificantmarketingeffortexceptforaninformativewebsite,whereteamsandindividualskaterscanstayupdatedonhours,fees,andnewsandmakeonlinepayments.Hesays:“Thatourcompetitorsareeitherindirectorsecondarysofarletsusstandinauniqueposition.BynowIstillkeepmypricesaffordableandofferflexiblepaymentplansthough,asmyinformalrelationshipwithcurrentcustomersisakeymatter.Whatevermaycomeinthenextfewyears,myrinkwilldefinitelybecompetitiveinprices.”21.WhichofthefollowingstatementsisFALSEbasedontheaboveinformationaboutCitiSkatingRink?A)Iftheownerexecutesextensivemarketingstrategies,therinkwillattractmanymorecustomersperweekB)MostoftheteamparticipantspreferpayingaflatfeeatthebeginningoftheleaguebecauseitisthecheapestoptionC)Iftheownerreducesthecurrentchargedfees,therinkwillattractalotmorecustomersperweekD)OnanormalFriday,therinkcangenerateamaximumofnearly$5,000inreve...
