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# A local department store hires college students for one

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Intern
Joined: 05 Mar 2007
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A local department store hires college students for one [#permalink]  19 May 2007, 05:39
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Difficulty:

(N/A)

Question Stats:

77% (02:17) correct 23% (01:03) wrong based on 5 sessions
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.
Director
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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
Intern
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10 views but no answers so far, can someone please explain the reasoning behind this?
Intern
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i can see the answer now, it was easy, somehow got entangled in C befoe.
Manager
Joined: 30 Mar 2007
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E
Intern
Joined: 19 May 2007
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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.
Intern
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I dont get it, i think C is better!
Intern
Joined: 02 Apr 2007
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Kudos [?]: 5 [0], given: 0

OA and OE pls!
Manager
Joined: 23 Mar 2007
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E is clear winner .
C is talking abt what "temporary service pays its auditors" which is irrelevant to the question asked.
Director
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(E)
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CEO
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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
Manager
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E.
Senior Manager
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Re: A local department store hires college students for one [#permalink]  10 Oct 2013, 21:35
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.
Manager
Joined: 22 Apr 2013
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Re: A local department store hires college students for one [#permalink]  24 Oct 2013, 03:06
I picked C because I thought that E is not necessarily true.

Example.)

1.) Cost of Temp Auditor=$100 2.) Cost of Student =$40
3.) Cost of Training = $30 4.) Cost of Insurance =$10

Total Cost of Student is $80 and Total cost of temp auditor is$100.

Now it is clear that training cost is \$30 which is more than 20% of the cost of temp auditor. So in this case E is not true.

Although C is not the best answer but I eliminated E for the above reason and went for C because it was the best answer to me.

Can somebody help me with my reasoning and explain why E is the answer?
Re: A local department store hires college students for one   [#permalink] 24 Oct 2013, 03:06
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