The following appeared in a memorandum from the owner of Movies Galore, a chain of movie-rental stores."In order to stop the recent decline in our profits, we must reduce operating expenses at Movies Galore's ten movie-rental store

The following appeared in a memorandum from the owner of Movies Galore, a chain of movie-rental stores.

"In order to stop the recent decline in our profits, we must reduce operating expenses at Movies Galore's ten movie-rental stores. Since we are famous for our special bargains, raising our rental prices is not a viable way to improve profits. Last month our store in downtown Marston significantly decreased its operating expenses by closing at 6:00 P.M. rather than 9:00 P.M. and by reducing its stock by eliminating all movies released more than five years ago. By implementing similar changes in our other stores, Movies Galore can increase profits without jeopardizing our reputation for offering great movies at low prices."


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