During the early stages of the pandemic many U.S. residents were looking for recreation and ways to remain physically active that did not involve mingling with other people inside buildings. One such activity that met the criteria was outdoor go-kart racing. Contrary to the term “racing,” go-kart tracks serving the general public are not really racing-oriented. The karts are designed to be fun to drive for both experienced and inexperienced drivers alike. Anyone can just jump in and drive one, although practice leads to more skill. The karts themselves are very fun and safe to drive. The faster they are driven, the more physical is the workout. In most cases, the only “racing” being done is against the clock: trying for the best “lap time” (that is, having the lowest elapsed time to complete one entire circuit of the track). Printouts provided after the “heat” (a heat typically consists of 10 minutes of driving time around the track) reveal the lap times for each participant in the heat, ranked from quickest driver to slowest. PGP, the only outdoor go-kart track serving the Seattle area, has a 9/10-of-a-mile long track, with 30+ gas-powered karts capable of reaching speeds up to 50 mph. Anyone can arrive at the track at any time, pay $25, and jump in a kart (helmets are provided free of charge) and run in a heat with up to 30 other “racers” on the track at the same time. Depending on the skill level of the driver, a 10 minute heat would result in 7–9 laps (faster drivers can complete more laps in the same time frame). Many visitors to the track just run a single heat, but lots more come for a longer visit and run multiple heats (typically with a break or two in between). Completing a half-dozen heats (10-minute heats are run every 15 minutes) usually encompasses about two hours. During the non-rainy season in Seattle (generally from June to early-November), the track is busy every day from when it opens at 10:00 and closes at 5:00. During this season, PGP often hosts “corporate track events,” a “bonding exercise” that managers in local companies conduct with their employees. For these events, a company contracts with PGP to rent the whole track for an hour or so during the day to be used exclusively by its employees. Usually there is a break in the racing for lunch, employee recognition ceremonies, etc. (and of course, to proclaim the company “race winner”). When the season in Seattle turns rainy, there are far fewer customers at PGP each day (and rarely corporate events). PGP operates its track every day, rain or shine. What can make such an operation especially challenging is that the demand on any day is so closely tied to the weather, and thus sporadic. However, PGP must still keep a sizable staff working each day (about a dozen employees) even if only a few customers arrive (for example, corner workers are needed at the turns on the track regardless of how many racers are on the course; it still takes personnel to operate the front desk, mechanics to work on the karts, etc.). But even during Seattle’s rainy season, there are often dry times during the week (and sometimes even dry and wet times on any given day), so there are actually lots of opportunities to drive the karts during the fall, winter and spring. Dedicated kart drivers know that cold days are often the best days with the fastest lap times (colder air gives the engine more power, and the track is usually less crowded). And there are even a few (very few) die-hard racers who enjoy driving in the rain. Now, suppose that PGP management has approached you, a marketing consultant, to discuss a promotion that they are considering offering. The proposed promotion: Buy a “speed pack” for $150 and get $200 worth of races. The promotion would be launched in late November, and it would be valid to use anytime during the year. Only the purchaser of the speed pack would be entitled to use it (that is, the races could not be shared with friends, or the price split between two or more buyers). A limited number of speed packs (1000) would be sold, and PGP management expects all the speed packs would sell out. PGP management seeks your recommendation as to whether offering this promotion is a good or bad idea. Your task is to explain to them the potential benefits and drawbacks of running this promotion. Your analysis should include a computation of any shift in surplus that occurs for both PGP and the buyers of the speed packs. (In your analysis you can ignore any variable costs such as gasoline, tires, etc., which are relatively minor). Be sure to consider the strategic aspects of the promotion, as well. Begin your answer with either Recommend or Not Recommend.