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A local department store hires college students for one

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A local department store hires college students for one [#permalink] New post 19 May 2007, 06:39
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A local department store hires college students for one month every spring to audit its unsold inventory. It costs the department store 20 percent less to pay wages to students than it would cost to hire outise auditors from a temporary service. Even after factoring the cost of training and insuring the students against work-related injury, the department store spends less money by hiring the student auditors than it would by hiring from the temporary service.

The statement above, if true, best support which of the following assertions?

1) The amount spent on insurance for college student auditor is more than 20 percent of the cost of paying the college student's basic wages.

2) It takes 20 percent less time for the college student to audit the unsold inventory than it does for the outside auditors.

3) The department store pays its college student auditors 20 percent less than the temporary service pays its auditors

4)By hiring college students, the department store will cause 20 percent of the auditors at the temporary service to lose their jobs.

5) The cost of traning its own college student auditors is less than 20 percent of the cost of hiring auditors from the temporary services.
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 [#permalink] New post 19 May 2007, 07:38
This question is from an easy quations bin. The answer is number 5 as all other answers are either irrelevant or not supported by the argument
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 [#permalink] New post 19 May 2007, 07:39
10 views but no answers so far, can someone please explain the reasoning behind this?
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 [#permalink] New post 19 May 2007, 07:43
i can see the answer now, it was easy, somehow got entangled in C befoe.
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 [#permalink] New post 19 May 2007, 08:18
E
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 [#permalink] New post 19 May 2007, 10:38
E sounds good to me.. C may not be the correct answer as it talks about wages only and doesn't talk about the cost to the store.
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 [#permalink] New post 19 May 2007, 10:43
I dont get it, i think C is better! :oops:
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 [#permalink] New post 19 May 2007, 10:48
OA and OE pls!
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 [#permalink] New post 19 May 2007, 10:57
E is clear winner .
C is talking abt what "temporary service pays its auditors" which is irrelevant to the question asked.
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 [#permalink] New post 19 May 2007, 11:18
(E)
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 [#permalink] New post 19 May 2007, 22:52
Def. E. C is very tempting and I narrowed it down to C and E. But... If you notice C is already stated in the argument, thus it brings nothing new to the table.

E does so it must be E :)
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 [#permalink] New post 21 May 2007, 14:24
E.
  [#permalink] 21 May 2007, 14:24
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