Find all School-related info fast with the new School-Specific MBA Forum

It is currently 16 Sep 2014, 15:37

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Contrary to earlier predictions, demand for sugarcane has

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
User avatar
Joined: 28 Jul 2004
Posts: 182
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 02:39
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

85% (02:32) correct 15% (01:40) wrong based on 272 sessions
Contrary to earlier predictions, demand for sugarcane has not increased in recent years. Yet, even though prices and production amounts have also been stable during the last three years, sugarcane growers last year increased their profits by more than ten percent over the previous year’s level.

Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:

(A) Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol, yet their overall consumption of sugarcane decreased.
(B) Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested.
(C) The price of oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by over twenty percent.
(D) Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates.
(E) Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive artificial irrigation.
[Reveal] Spoiler: OA
Senior Manager
Senior Manager
User avatar
Joined: 21 Jun 2004
Posts: 340
Followers: 1

Kudos [?]: 2 [0], given: 0

GMAT Tests User
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 04:32
Eliminated C,D,E for the following reasons.
(C) Price of oil dropped. Decrease in cost price.Profit increases.
(D) Raw material at low rates. So profit increases.
(E) Saved money thru irrigation. Hence, decrease in costs incurred. Profit increases.

Iam not sure between A and B.
I don't totally understand what option A talks about.

(B) talks about paying at an hourly rate instead of paying them by amount harvested. We do not know if the hourly rate is lesser than the
amount that'll be paid for the amount harvested.

So I'll vote for B.
_________________

510 on my first GMAT. 610 on second GMAT.!
The struggle continues.

1 KUDOS received
GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4318
Followers: 22

Kudos [?]: 163 [1] , given: 0

GMAT Tests User
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 04:41
1
This post received
KUDOS
A it is
B talks about sugarcane growers saving money on wages and thus increased their profitability
A talks about supply and demand. It says that sugarcane supply increased and demand decreased. This means that there is an oversupply of sugarcane and either that prices should have come down or sugarcane itself would not sell. It cannot explain why profitability increased
_________________

Best Regards,

Paul

Senior Manager
Senior Manager
User avatar
Joined: 06 Dec 2003
Posts: 366
Location: India
Followers: 1

Kudos [?]: 3 [0], given: 0

GMAT Tests User
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 09:01
Hmm, i accord Paul - A should be it.

dharmin
_________________

Perseverance, Hard Work and self confidence

Manager
Manager
User avatar
Joined: 18 Aug 2004
Posts: 96
Location: Santa Clara
Followers: 1

Kudos [?]: 1 [0], given: 0

Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 12:45
It's A.

With B...it still explains why profits have increased while production/price is the same.
_________________

"Do or do not, there is no try."
-Yoda

Director
Director
User avatar
Joined: 05 May 2004
Posts: 577
Location: San Jose, CA
Followers: 2

Kudos [?]: 27 [0], given: 0

GMAT Tests User
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 13:42
A for sure .... used POE
and used Profits=Rev-Cost
BCDE all say in some way or the other that the costs were lower last yr
Intern
Intern
avatar
Joined: 23 Sep 2004
Posts: 31
Followers: 1

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

Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 23 Sep 2004, 17:33
Definitely A. CDE are of course out. B also clearly states the farmers saved money which shld reflect positively on profit.
Director
Director
User avatar
Joined: 21 Dec 2010
Posts: 658
Followers: 10

Kudos [?]: 81 [0], given: 51

GMAT Tests User
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 27 Apr 2011, 10:36
clear A . i dont understand how B can even come into contention
_________________

What is of supreme importance in war is to attack the enemy's strategy.

SVP
SVP
User avatar
Joined: 01 Oct 2013
Posts: 1894
Followers: 259

Kudos [?]: 58 [0], given: 0

Premium Member
Re: Contrary to earlier predictions, demand for sugarcane has [#permalink] New post 05 May 2014, 11:27
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Contrary to earlier predictions, demand for sugarcane has   [#permalink] 05 May 2014, 11:27
    Similar topics Author Replies Last post
Similar
Topics:
Contrary to earlier predictions, demand for sugarcane has vermatanya 10 15 Jan 2008, 13:02
Contrary to earlier conjectures, it may be that increased arjsingh1976 8 07 Nov 2006, 23:23
Contrary to earlier conjectures, it may be that increased gmacvik 9 16 Jan 2006, 23:12
Contrary to earlier conjectures, it may be that increased sgrover 3 14 Sep 2005, 07:02
Contrary to earlier conjectures, it may be that increased WinWinMBA 5 03 Jun 2005, 15:48
Display posts from previous: Sort by

Contrary to earlier predictions, demand for sugarcane has

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.