Bert's Refuse has decided to add salvage to its

Conclusion: Bert's Refuse …... has offered its client, McCloud Metalworking, the following deal...

Premise: Bert's will deduct the amount it receives …... from the cost of refuse removal. McCloud will pay an estimated monthly bill and ...… Berts will adjust the bill to reflect the true profit from its salvage of McCloud's scrap.

Assumptions: There are no problems with the plan. McCloud will receive the amount of savings it expects.

There are two ways that you can identify that this argument uses the planning structure. First, the question stem asks about a disadvantage of a plan. Second, the argument starts, as many planning arguments do, by stating a problem. In this case, Bert's Refuse wishes to go into the salvage business and offers a deal to one of its clients, McCloud Metalworking.

The basic assumption of any planning argument is that there are no problems with the proposed plan. For this argument, one potential problem with the proposed plan would be any changes in the scrap metal market that lower Bert's profit and decrease the savings McCloud expects to see. The argument thus assumes that the market for scrap metal will remain as predicted by McCloud when they agreed to the deal.

This is a weaken question so the correct answer either introduces a possible problem with the plan or provides a further reason to believe that the plan will not be successful.

Choice A: The same deal with another metal working firm is out of scope. This answer adds new information which is irrelevant to the argument. Bert's deal with another firm will not change the savings McCloud gains from the deal.

Choice B: Correct. This answer introduces a possible problem with the plan by stating that the price for salvaged scrap metal will decline. This constitutes a disadvantage for McCloud as Bert's will have a smaller profit and McCloud's savings will not be as great as anticipated.

Choice C: Orders … which generate more scrap metal means that Bert's will have more salvage to sell and McCloud's savings will be greater. This answer strengthens rather than weakens the plan.

Choice D: An increase in the demand for McCloud's goods is, at worst, out of scope and at best, strengthens the plan. If McCloud is producing more goods, it will also produce more scrap metal, which means that Bert's will have more salvage and the savings to McCloud may increase.

Choice E: Other materials which McCloud's does not generate is out of scope. Bert's decision to salvage other materials will not affect the profit it makes from selling McCloud's scrap metal.

BR -> will receive $ for refuse removal. -> generate scrap metal. -> scrap metal sold back to MM.
MM has to pay the difference between cost to refuse and the cost of scrap metal.

the problem for MM will be if the costs either increase while the price for scrap remain the same or stay the same while the price for scrap decreases.

A - irrelevant
B - aha, cost remain the same, but the price decreases...this will not be good for MM.
C - irrelevant.
D - so what does it have to do with the refuse removal?
E - so what? MM will decide to salvage only the materials that will generate scrap metal. so out.

B

I know B but can anyone help me to understand why not E?please help me to eliminate it.

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