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Director
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United Lumber will use trees from its forests for two [#permalink]
 01 Mar 2007, 00:58
Question Stats:
57% (02:39) correct
42% (01:44) wrong based on 2 sessions
United Lumber will use trees from its forests 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 the logging site, where the trees are debranched, or at 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 fiberboard is manufactured.
C. The debranching of trees and the conversion of the branches into chips are the only stages in the processing of branches that it would be in United's economic advantage to perform at the logging site.
D.Transportation costs from the logging site to the factory that are determined by volume of 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 fiberboard.
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Director
Joined: 06 Feb 2006
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I pick D.
Conclusion is that you need approx. 2 branches to make 1 wood chip.
Thus if transportation costs are determined by volume of cargo, it would be wise to convert all branches into chips at logging site....
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Director
Affiliations: FRM Charter holder
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yeah..one more D.
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Senior Manager
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Agree D
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VP
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Definitely D
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Manager
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'D'
"Transportation costs from the logging site to the factory that are determined by volume of cargo would be lower if the conversion into chips is done at the logging site rather than at the factory. "
perfectly supports the last statement which points to transportation cost indirectly.
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Manager
Joined: 28 Feb 2007
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Swagatalakshmi wrote: United Lumber will use trees from its forests 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 the logging site, where the trees are debranched, or at 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 fiberboard is manufactured.
C. The debranching of trees and the conversion of the branches into chips are the only stages in the processing of branches that it would be in United's economic advantage to perform at the logging site.
D.Transportation costs from the logging site to the factory that are determined by volume of 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 fiberboard.
One more D
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Director
Joined: 24 Aug 2006
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I do not have OA, but I selected D
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"Education is what remains when one has forgotten everything he learned in school."
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VP
Joined: 07 Nov 2005
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Easy pick D.
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Trying hard to conquer Quant.
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VP
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HAS to be a D!
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VP
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D shows that less volume , will cost less to transport
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Intern
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I too join "D" club, what is OA for this question?.
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Intern
Joined: 01 Nov 2005
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Feels good to solve a problem early in the morning
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Target +700
Life is like a box of chocolate, you never know what you gonna get.. 
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Senior Manager
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Concentration: Technology, General Management
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Re: United Lumber will use trees from its forests for two [#permalink]
15 Jan 2012, 07:38
I am also for D and my reasoning is as follows: First, the question is - what can we infer from the given argument. A --> it is a FACT, not an inference. So rule out. E --> No info is available to support this. So, rule out. B --> It is a statement with no support. So, rule out. C --> It is a statement with no support. So, rule out. D --> It is a statement with SUPPORT from the last lines of the argument. So, selected. Note: the same argument can be used to find something that weakens the given conclusion. In that case, answer would be A, because unless and until we know how much it costs to transport the machine from and to the factory, we can not conclude de-branching at the logging site is economical. Even if we know how much does it cost, we can not support the given conclusion because it depends on many trees are there in the site.
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Re: United Lumber will use trees from its forests for two
[#permalink]
15 Jan 2012, 07:38
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