The following appeared in a corporate planning memo at ABC Cereal Company, the makers of Better Bran cereal.
"Sales of Better Bran have declined in recent years, for reasons that management has now identified. First, Better Bran is a cereal with high sugar content, and recent research studies have found that most consumers say they are concerned about the amount of sugar added to their breakfast cereal. Second, the price of Better Bran has increased by 5 percent in each of the last three years. Therefore, to increase our company's profits we need to reduce the amount of sugar in Better Bran and lower Better Bran's price."
"Sales of Better Bran have declined in recent years, for reasons that management has now identified. First, Better Bran is a cereal with high sugar content, and recent research studies have found that most consumers say they are concerned about the amount of sugar added to their breakfast cereal. Second, the price of Better Bran has increased by 5 percent in each of the last three years. Therefore, to increase our company's profits we need to reduce the amount of sugar in Better Bran and lower Better Bran's price."
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