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# A company that manufactures heavy industrial equipment

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Senior Manager
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A company that manufactures heavy industrial equipment [#permalink]

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26 Oct 2012, 09:09
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79% (02:42) correct 21% (02:02) wrong based on 75 sessions

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A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period.
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed

OA after some discussion....
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Re: A company that manufactures heavy industrial equipment CR [#permalink]

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26 Oct 2012, 10:05
Jp27 wrote:
A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period.
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed

OA after some discussion....

paradox is - despite installing expensive air filter, why would the operating cost be lower than usual? Definitely - the answer should be one showing that some sort of 'saving' was experienced because of new air filter. Option B does exactly that.
Hence ans B it is.

Hope it helps.
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Re: A company that manufactures heavy industrial equipment CR [#permalink]

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26 Oct 2012, 15:37
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I will go with B)

(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters. --> Does not help us in any way to resolve the paradox.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment --> this clearly brings out the reason why the Operating cost was lower this q.
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period. --> Weakens the argument giving us a reason why the Operating cost should have increased..
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment --> OOS
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed --> OOS
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KPV

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Re: A company that manufactures heavy industrial equipment [#permalink]

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04 Oct 2013, 11:08
Jp27 wrote:
A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period.
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed

OA after some discussion....

I'll go with (D), what is the temperature control equipment was generating higher than normal expenses? This solves the paradox.

Any opinions on this one?

Bumppp

Also in E, what if the new air filtering equipment increased the productivity of employees and thus helped to reduce costs as well?

I'm not to keen on B by the way could someone elaborate? Thanks!
Cheers!
J
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Re: A company that manufactures heavy industrial equipment [#permalink]

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25 Apr 2014, 18:50
Bumping into this one, and lookin' for some answers

Holla at me if you can explain why D is incorrect ok?

Thanks!
Will throw some Kudos out there for good responses

Cheers
J
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Re: A company that manufactures heavy industrial equipment [#permalink]

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21 Sep 2015, 02:13
what is OA? why not A?

it is talking about operating cost. so cost factor should be there in the answer.
D can be eliminated.
Re: A company that manufactures heavy industrial equipment   [#permalink] 21 Sep 2015, 02:13
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