Qualitative Considerations
Response to the following problem:
The Upscale Department Store has been plagued with shoplifting. The president, Hector Conrad, has suggested that the store hire a security force to "frisk" all customers as they leave the store. It is estimated that annual shoplifting losses are $100,000. Expenses associated with the security force are estimated to be $50,000 annually. Before Mr. Conrad makes his final decision, what other factors might he consider?