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united lumber

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united lumber [#permalink] New post 11 Nov 2010, 07:23
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

88% (01:07) correct 12% (00:57) wrong based on 66 sessions
can some one please explain this
thanks in advance
[Reveal] Spoiler: OA

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Re: united lumber [#permalink] New post 11 Nov 2010, 09:03
I think "C" goes beyond the scope. From the passage we cannot conclude whether de-branching and conversion into chips are the ONLY steps of the production.
Thus (D) is more in the scope, repeating exactly what is in the text.
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Re: united lumber [#permalink] New post 24 Dec 2010, 07:00
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anilnandyala wrote:
can some one please explain this
thanks in advance


To brief the argument:
XYZ company uses trees for two things:
1) Trunk ---> Lumber && Branches --> Wood chips --> Fiberboard
2) conversion cost same @ Site or @ factory
3) Wood chips occupy half the volume of Branches...

Option A: Out of scope as argument doesn't mention anything about wood chipping machine.
Option B: Not correct as Processing cost is same as mentioned in premise 2
Option C: Other process might be involved, as not mentioned in the passage that these are the only processes.
Option D: As volume is less, we can infer that Transportation cost will be less
Option E: Out of scope.

Hence option D.
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Re: united lumber [#permalink] New post 24 May 2011, 12:09
United Lumber will use trees from its forest for two products. The tree trunks will be used for lumber and the branches converted into wood chips to make fiberboard. The cost of this conversion would be the same whether done at logging site, where the trees are debranched, or at the United's factory. However, wood chips occupy less than half the volume of the branches from which they are made.
The information given, if accurate, most strongly supports which of the following?


A. Converting the branches into wood chips at the logging site would require transporting a fully assembled wood-chipping machine to and from the site.
B. It would be more economical to debranch the trees at the factory where the fireboard is manufactured.
C. The debranching of trees and the conversion of the branches into chips are the the only stages in the processing of branches that would be in the economic advantage to perform at the logging site.
D. Transportation costs from the logging site to the factory that are determined by volume of the cargo would be lower if the conversion into chips is done at the logging site rather than at the factory.
E. In the wood- processing industry, branches are used only for the production of wood chips for fibre board.

D is correct. see highlighted words.
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Re: united lumber   [#permalink] 24 May 2011, 12:09
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