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Shelby Industries manufactures and sells the same gauges as [#permalink]
 21 Aug 2012, 10:13
Question Stats:
91% (02:03) correct
8% (00:34) wrong based on 1 sessions
Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages. Which of the following, if true, would most weaken the argument above? (A) Because they make a small number of precision instruments, gauge manufacturers cannot receive volume discounts on raw materials. (B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales. (C) Jones Industries has taken away twenty percent of Shelby Industries' business over the last year. (D) Shelby Industries pays its employees, on average, ten percent more than does Jones Industries. (E) Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry. Please can you provide explanations to your answer?
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
21 Aug 2012, 11:18
B is the direct answer. Any specific doubts?
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
21 Aug 2012, 11:57
ravstime wrote: B is the direct answer.
Any specific doubts? Yes, was debating between B and C. In C, If Jones Industries has taken away twenty percent of Shelby Industries' business... that would mean lowering the wages would not help them having a competitive advantage, since they have anyways lost business. Option B has no evidence/relation from the paragraph that lowering wages would reduce the quality of work. It could be other reasons, perhaps some employees aren't motivated by money. Am I missing something?
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
23 Aug 2012, 07:12
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prep wrote: ravstime wrote: B is the direct answer.
Any specific doubts? Yes, was debating between B and C. In C, If Jones Industries has taken away twenty percent of Shelby Industries' business... that would mean lowering the wages would not help them having a competitive advantage, since they have anyways lost business. Option B has no evidence/relation from the paragraph that lowering wages would reduce the quality of work. It could be other reasons, perhaps some employees aren't motivated by money. Am I missing something? The way I do it is that in order to choose the best option I try to look around for the words which have already been mentioned in the passage. If the option does not have the words mentioned in the passage I mark it as not relevant even if it makes logical choice. It works all the times. In option C it mentions above 20% of the business being taken away which I can not relate back to passage. Option B it states a logical fact around wages which is also mentioned in the passage. Let me know if you have any confusion Give Kudos if you like my reply
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
23 Aug 2012, 08:53
" I try to look around for the words which have already been mentioned in the passage" Need more clarification on this. Many times correct answers have "new information". Moreover, wrong answers have words from the stimulus. Or do you employ some other method? sanki779 wrote: prep wrote: ravstime wrote: B is the direct answer.
Any specific doubts? Yes, was debating between B and C. In C, If Jones Industries has taken away twenty percent of Shelby Industries' business... that would mean lowering the wages would not help them having a competitive advantage, since they have anyways lost business. Option B has no evidence/relation from the paragraph that lowering wages would reduce the quality of work. It could be other reasons, perhaps some employees aren't motivated by money. Am I missing something? The way I do it is that in order to choose the best option I try to look around for the words which have already been mentioned in the passage. If the option does not have the words mentioned in the passage I mark it as not relevant even if it makes logical choice. It works all the times. In option C it mentions above 20% of the business being taken away which I can not relate back to passage. Option B it states a logical fact around wages which is also mentioned in the passage. Let me know if you have any confusion Give Kudos if you like my reply |
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
23 Aug 2012, 09:09
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Look at the conclusion , which says : to promote this end, Shelby Industries should lower employee wages. , if lowering wages has some other drawback , which in our case is the lowered sales then how will Shelby Ind have the advantage Hope this helps
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
23 Aug 2012, 18:08
crackHSW wrote: Look at the conclusion , which says :
to promote this end, Shelby Industries should lower employee wages. , if lowering wages has some other drawback , which in our case is the lowered sales then how will Shelby Ind have the advantage
Hope this helps My fiend...Lowering wages will not help Shelby to to increase the sales.. that's the reason it is weaking the answer. Please read the problem statement again
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Re: Shelby Industries manufactures and sells the same gauges as [#permalink]
23 Aug 2012, 18:18
Thanks.. got it  sanki779 wrote: crackHSW wrote: Look at the conclusion , which says :
to promote this end, Shelby Industries should lower employee wages. , if lowering wages has some other drawback , which in our case is the lowered sales then how will Shelby Ind have the advantage
Hope this helps My fiend...Lowering wages will not help Shelby to to increase the sales.. that's the reason it is weaking the answer. Please read the problem statement again |
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Re: Shelby Industries manufactures and sells the same gauges as
[#permalink]
23 Aug 2012, 18:18
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