4:41 0 44v 0 •S al al 75% iCase Study: 1GAMER Internet ShopJoel, a self-confessed computer geek and gamer, is planningto start a computer shop in his barangay of San Vicente. Helearned from a quick visit to the barangay hall that therewere around 40,000 people living in the area. However, hewants to cater specifically to the "gamer" segment made upof mostly male high school and college students, plus youngadults with a lot of free time on their hands.To help him calculate for the potential number ofgamers/customers, he went around the barangay, visitingthe schools and the existing computer shops. After one dayof just walking around and asking a few questions with theright people, he gathered the following information.There were three schools in San Vicente: oneall-boys Catholic high school with 400 students, anepublic elementary with around 2,000 students, andone public high school with nearly 1,000 students.• There were 11 computer shops in the barangay, allof which were five to fifteen minutes walkingdistance from at least one school.Seven of these shops had only three to fivecomputers and catered to people who just neededto print and type documents or surf the net. Theremaining four shops had at least ten computerseach and catered to the gamer market. The biggestshop had 25 computers.• All computer gaming shops charged a rental price ofPhp20.00 – Php25.00 per hour.As Joel suspected, the gamers were mostly malehigh school students from both the Catholic andpublic high schools. There were a few college-agestudents and young adults. There were even fewergrade school students.• Peak hours were on weekdays from 3PM to 7PM. Atthis time, all computer gaming shops were filled tocapacity. Oftentimes, there would be a number ofcustomers just watching the other players or waitingfor a seat to become available.• On non-peak hours (including weekends), the shopsaveraged five customers per hour.Joel also made sure to patronize all four gaming shops inorder to assess their performance. Except for the biggestshop (which was also the newest), the equipment in theseshops were at least three years old and were in need ofupgrades. The internet connection in all shops was okay butwas prone to lag (or slow-downs). Air-conditioning was aproblem in two shops, especially during the peak hoursBased on his research, Joel estimated that the gamer marketin San Vicente was at least 1,000 strong (1,000 male highschool). This did not include the number of college studentsand young adults residing in the barangay who were alsogamers. But since existing gaming shops only had a totalcapacity of less than 100 customers per hour, he believedthat there was still room for him to put up another shopwith 25 computers. He planned to charge a rental fee ofPhp20, 000 per hour. His operating hours would be from10AM to 10PM every day.With this estimates, Joel forecasted that he would be able tosell 3,280 "computer rental hours" in one month (given fourweeks or 28 days in a month). When multiplied by thePhp20.00 hourly rental fee, this was equivalent to Php65,600 in sales every month.To validate his conclusions, Joel wanted to conduct a surveyof 100 gamers of different ages. Still, he was confident thatsetting up a new gaming shop could earn him a lot ofmoney.Questions:1. How did Joel solve for the Php65, 600 monthly salesestimate? Write down the equation or solution that he used.2. How can Joel differentiate his computer shop from that ofexisting competitors? List at least three (3) things that youthink will make his shop the most popular one in hisbarangay.

Question

4:41 0 44v 0 •S al al 75% iCase Study: 1GAMER Internet ShopJoel, a self-confessed computer geek and gamer, is planningto start a computer shop in his barangay of San Vicente. Helearned from a quick visit to the barangay hall that therewere around 40,000 people living in the area. However, hewants to cater specifically to the &#34;gamer&#34; segment made upof mostly male high school and college students, plus youngadults with a lot of free time on their hands.To help him calculate for the potential number ofgamers/customers, he went around the barangay, visitingthe schools and the existing computer shops. After one dayof just walking around and asking a few questions with theright people, he gathered the following information.There were three schools in San Vicente: oneall-boys Catholic high school with 400 students, anepublic elementary with around 2,000 students, andone public high school with nearly 1,000 students.• There were 11 computer shops in the barangay, allof which were five to fifteen minutes walkingdistance from at least one school.Seven of these shops had only three to fivecomputers and catered to people who just neededto print and type documents or surf the net. Theremaining four shops had at least ten computerseach and catered to the gamer market. The biggestshop had 25 computers.• All computer gaming shops charged a rental price ofPhp20.00 – Php25.00 per hour.As Joel suspected, the gamers were mostly malehigh school students from both the Catholic andpublic high schools. There were a few college-agestudents and young adults. There were even fewergrade school students.• Peak hours were on weekdays from 3PM to 7PM. Atthis time, all computer gaming shops were filled tocapacity. Oftentimes, there would be a number ofcustomers just watching the other players or waitingfor a seat to become available.• On non-peak hours (including weekends), the shopsaveraged five customers per hour.Joel also made sure to patronize all four gaming shops inorder to assess their performance. Except for the biggestshop (which was also the newest), the equipment in theseshops were at least three years old and were in need ofupgrades. The internet connection in all shops was okay butwas prone to lag (or slow-downs). Air-conditioning was aproblem in two shops, especially during the peak hoursBased on his research, Joel estimated that the gamer marketin San Vicente was at least 1,000 strong (1,000 male highschool). This did not include the number of college studentsand young adults residing in the barangay who were alsogamers. But since existing gaming shops only had a totalcapacity of less than 100 customers per hour, he believedthat there was still room for him to put up another shopwith 25 computers. He planned to charge a rental fee ofPhp20, 000 per hour. His operating hours would be from10AM to 10PM every day.With this estimates, Joel forecasted that he would be able tosell 3,280 &#34;computer rental hours&#34; in one month (given fourweeks or 28 days in a month). When multiplied by thePhp20.00 hourly rental fee, this was equivalent to Php65,600 in sales every month.To validate his conclusions, Joel wanted to conduct a surveyof 100 gamers of different ages. Still, he was confident thatsetting up a new gaming shop could earn him a lot ofmoney.Questions:1. How did Joel solve for the Php65, 600 monthly salesestimate? Write down the equation or solution that he used.2. How can Joel differentiate his computer shop from that ofexisting competitors? List at least three (3) things that youthink will make his shop the most popular one in hisbarangay.

Accepted Answer

1) Given,
Total estimated sales on monthly basis (in Philippines Peso) = Php 65,600
The fixed hourly…