Metro Ballet Company presents high-quality productions of traditional,

Official Explanation

This requires consideration of all the strategy options to determine which one would lead most directly to decreasing expenses for Metro Ballet’s classical ballet productions. Obtaining public funding to double the spending on stage productions without increasing ticket prices would lead to an increase in expenses for ballet productions, although those expenses should be offset by public funding. If expanding productions to include modern, folk, and tap dance traditions had the effect of decreasing expenses associated with ballet, that effect would be indirect. Offering discounts to reward people who have attended the greatest number of performances would likely reduce revenue and therefore increase expenses associated with ballet productions. Mounting an advertising campaign emphasizing the affordability and excitement of the ballet’s spectacular productions should increase expenses in the short term, although it may lead to increased revenue in the long term. Only the strategy of returning spending on productions to the level of several years ago has the immediate effect of decreasing expenses associated with classical ballet productions.

The correct answer is Return spending on productions to levels of several years ago.

It is again necessary to consider all the options. It is unclear how the strategy of doubling spending on stage productions without raising ticket prices would address the problem of attracting a larger audience, unless the process of obtaining public funding entailed an advertising campaign. Since the current audience has become accustomed to lavish productions, a reduction in spending on ballet productions might have the effect of actually reducing that audience. Expanding productions to include different dance traditions might attract a larger audience, but only if these traditions appeal to people not currently attending Metro Ballet, and only if they are made aware of the new productions. Since most people in the current audience have already been attending Metro Ballet productions for a number of years, offering discounts to those who have already attended a great number of performances may reinforce their loyalty, but is unlikely to attract people who haven’t previously attended. An advertising campaign aimed at addressing the reasons why area residents surveyed don’t currently attend, however, would constitute the most direct attempt to increase audience size among the options listed.

The correct answer is Mount a local advertising campaign emphasizing the affordability and excitement of Metro Ballet’s spectacular stage productions.