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A local department store hires college students for one [#permalink]
19 May 2007, 06:39
80% (02:28) correct
20% (01:03) wrong based on 13 sessions
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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.
Re: A local department store hires college students for one [#permalink]
10 Oct 2013, 22:35
Between C and E. The problem with C is that although it pays students 20% less money it is not sure if it wud be a feasible option. What abt the cost of training and teh insurance that are aforementioned in the passage. Hence answer is E.