Last year Company X experienced an unexpectedly steep drop : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 10:51

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Last year Company X experienced an unexpectedly steep drop

Author Message
TAGS:

Hide Tags

CEO
Joined: 15 Aug 2003
Posts: 3460
Followers: 67

Kudos [?]: 862 [0], given: 781

Last year Company X experienced an unexpectedly steep drop [#permalink]

Show Tags

31 Dec 2003, 13:34
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:53) correct 0% (00:00) wrong based on 3 sessions

HideShow timer Statistics

Last year Company X experienced an unexpectedly steep drop in profits. To offset this loss, Company X should reduce its workforce by 10%. Doing so will allow the company to save a great deal in payroll expenditures. Company X will therefore be able to recoup its losses.

The argument above assumes that

the amount saved in payroll expenditures will exceed the amount lost in profits
the amount saved in payroll expenditures will equal the amount lost in profits
reducing Company X's workforce will not cause the company to lose productivity
Company X has no reserve funds that it could use to offset its losses
Company X has not at some time in the past reduced its workforce
If you have any questions
New!
Manager
Joined: 29 Aug 2003
Posts: 240
Location: MI
Followers: 1

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

Show Tags

31 Dec 2003, 13:54
Go with C.

CEO
Joined: 15 Aug 2003
Posts: 3460
Followers: 67

Kudos [?]: 862 [0], given: 781

Show Tags

31 Dec 2003, 13:59
asandeep wrote:
Go with C.

isnt C out of scope?

i picked A
Manager
Joined: 29 Aug 2003
Posts: 240
Location: MI
Followers: 1

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

Show Tags

31 Dec 2003, 14:05
praetorian123 wrote:
asandeep wrote:
Go with C.

isnt C out of scope?

i picked A

The argument does not depend on the fact that payroll savings will exceed or equal the losses.
Even if the savings do not equal or exceed they will still allow the company to "save a great deal" in payroll expenses.

If C is negated, then the reduction in workforce pushes the company further in losses and thus the argument falls apart.

Agree ?
Intern
Joined: 05 Aug 2014
Posts: 10
Followers: 0

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

Re: Last year Company X experienced an unexpectedly steep drop [#permalink]

Show Tags

14 Apr 2016, 03:58
I think C should be the right answer.
Re: Last year Company X experienced an unexpectedly steep drop   [#permalink] 14 Apr 2016, 03:58
Similar topics Replies Last post
Similar
Topics:
Company X experienced a sharp decrease 3 13 Apr 2016, 22:03
7 Company X experienced a significant loss of market share over a number 5 26 Nov 2014, 04:29
26 Company X experienced a significant loss of market share ove 12 09 Jul 2013, 14:56
1 Over the last year, a certain company dismissed a large 2 29 Oct 2012, 00:29
1 Last year company X experienced an unexpected steep drops in 15 08 Jul 2007, 21:28
Display posts from previous: Sort by