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A shortage of orders for Manto Aircraft's airliners has led [#permalink]
22 Feb 2009, 12:22
71% (02:05) correct
29% (00:01) wrong based on 2 sessions
A shortage of orders for Manto Aircraft's airliners has led analysts to predict that the manufacturer will have to lay workers ,the new order that consolidated airlines has just made for 20 of Manto's model TX jets does not provide a reason for the analysts to revise their predictions ,because simultaneously with its new order , consolidated canceled its existing order for an equal number of manto's larger, more expensive model Z jets
which of the following ,if true, most seriously weakens the argument?
A. Manto relies more heavily on outside subcontractors to provide the labor to manufacture the Model Z than it does the Model TX
B. The Manto employees who currently work to manufacture the model Z are Not proficient at manufacturing the model TX
C. Manto includes all required maintenance work for the first five years in the price of each jet it sells .
D. Manto has had to lay off workers several times within the past ten years but has typically rehired many of the workers when it subsequently received new orders
E. A large number of the airliners in consolidated is fleet are at the beginning of their expected service life
Re: CR: Manto Aircraft's airliners [#permalink]
22 Feb 2009, 12:50
The argument is that the number of workers that need to be laid off does NOT need to be revised.
The underlying reason is there was order for X units of A (big ones) that is now cancelled and now X units of B(small ones) is ordered.
To me (B) stands out because if people who are on board for A dont know how to make B, company will need to fire and hire again. It is very well possible that they might need fewer/more people than they currently have depending on the business requirement/intricacies in making B. But the number needs to be revised. We cannot just say that replacement will be one to one.