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Advanced Technology School and Computer Horizons provide

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Director
Director
User avatar
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 513
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Followers: 20

Kudos [?]: 265 [0], given: 629

Advanced Technology School and Computer Horizons provide [#permalink] New post 28 Oct 2013, 17:11
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

90% (02:12) correct 10% (00:21) wrong based on 39 sessions
Advanced Technology School and Computer Horizons provide training for
information technology professionals. Both schools spend fifty percent of
their budget on professor salaries. In a new strategic initiative Computer
Horizons is attempting to gain higher profits than Advanced Technology.
Computer Horizons should lower professor salaries to accomplish this goal.

Which of the following, if true, would most weaken the argument above?

A. The remainder of Computer Horizons budget contains a large number
of fixed costs.

B. Reducing professor salaries would lead to lower teaching quality which
would subsequently cause a decrease in student enrollment and tuition revenues.

C. Last year Advanced Technology replaced Computer Horizons as the number
one ranked technology school in the local newspaper's educational survey.

D. Computer Horizons professors earn fifteen percent more than their
counterparts at Advanced Technology.

E. Computer Horizons and Advanced Technology are the sole information
technology schools in their metropolis.


OE to follow
[Reveal] Spoiler: OA

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Re: Advanced Technology School and Computer Horizons provide [#permalink] New post 28 Oct 2013, 22:49
Expert's post
A. The remainder of Computer Horizons budget contains a large number
of fixed costs- We donot care about the remainder of the budget- Out of scope- Elliminate

B. Reducing professor salaries would lead to lower teaching quality which
would subsequently cause a decrease in student enrollment and tuition revenues- Present new info and shatters the conclusion that Computer horizon should lower professor salaries to accomplish this goal- Seems to be correct- Hold

C. Last year Advanced Technology replaced Computer Horizons as the number
one ranked technology school in the local newspaper's educational survey- Out of scope

D. Computer Horizons professors earn fifteen percent more than their
counterparts at Advanced Technology- Opposite

E. Computer Horizons and Advanced Technology are the sole information
technology schools in their metropolis- Out of scope

So the Answer is B :)
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Director
Director
User avatar
Status: 1,750 Q's attempted and counting
Affiliations: University of Florida
Joined: 09 Jul 2013
Posts: 513
Location: United States (FL)
Schools: UFL (A)
GMAT 1: 600 Q45 V29
GMAT 2: 590 Q35 V35
GMAT 3: 570 Q42 V28
GMAT 4: 610 Q44 V30
GPA: 3.45
WE: Accounting (Accounting)
Followers: 20

Kudos [?]: 265 [0], given: 629

Re: Advanced Technology School and Computer Horizons provide [#permalink] New post 29 Oct 2013, 21:14
Official Explanation

Answer B
- The argument recommends that Computer Horizons lower professor salaries to gain higher profits. One way to weaken a recommendation is to point out unintended consequences. Choice (B), the correct answer, does so by pointing out that reducing salaries would reduce both costs and revenues. Choice (A) is a 180 wrong answer trap. Cutting professor salaries is a more attractive option if the remaining part of Computer Horizons' budget contain fixed costs. Choice (C) is outside the scope of the argument. Although choice (C) indicates Computer Horizons should be concerned about its competitor, this does not affect how Computer Horizons should regain its competitive advantage. Choice (D) strengthens the argument and is a 180 wrong answer trap. Indeed, if Computer Horizon professors are overpaid, reducing salaries becomes a more attractive option. Choice (E) also strengthens the argument because professors whose salaries are cut would have limited alternative employment opportunities.
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Re: Advanced Technology School and Computer Horizons provide   [#permalink] 29 Oct 2013, 21:14
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