United states : GMAT Verbal Section
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 23 Jan 2017, 15:58

### 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

# United states

Author Message
Manager
Joined: 23 Jan 2008
Posts: 108
Followers: 2

Kudos [?]: 75 [0], given: 0

### Show Tags

23 Jan 2008, 21:56
A united states manufacturer of farm equipment reported a 1988 third-quarter net income of $32 million, compared with$25.5 million in the third quarter of 1987. This increase was realized despite a drop in US retail sales of farm equipment toward the end of the third quarter of 1988 as a result of a drought.

Which of the following, if true, wud ci=ontribute most to an explanation of the increase in the manufacturer's net income?

(A)During the third quarter of 1988, the manufacturer announced that it wud add irrigation systems to its line of products.
(B)In the third quarter of 1988, the manufacturer paid no wages during a six-week stirke, but stocks on hand wre adequate to supply dealers.
(C)Sales in the US of farm equipment made and sold by foreign companies werre higher in the third quarter of 1988 than in any previous quarter.
(D)Official dealers of the manufacture had low supplies of farm equipment during the third quarter of 1988.
(E)Eligible US farmers benefited from a federal drought-relief fund late in the third quarter of 1988.
If you have any questions
New!
Director
Joined: 03 Sep 2006
Posts: 879
Followers: 6

Kudos [?]: 772 [0], given: 33

### Show Tags

23 Jan 2008, 22:20
It should be "A"
Director
Joined: 30 Jun 2007
Posts: 793
Followers: 1

Kudos [?]: 157 [0], given: 0

### Show Tags

23 Jan 2008, 23:10
Conclusion: This increase was realized despite a drop in US retail sales of farm equipment toward the end of the third quarter of 1988 as a result of a drought.

(A)During the third quarter of 1988, the manufacturer announced that it wud add irrigation systems to its line of products. [But as per the conclusion, this choice will not help – third quarter, there is decline in sales]
(B)In the third quarter of 1988, the manufacturer paid no wages during a six-week stirke, but stocks on hand wre adequate to supply dealers. [ This may help in increase in net income]
(C)Sales in the US of farm equipment made and sold by foreign companies werre higher in the third quarter of 1988 than in any previous quarter. [Irrelevant]
(D)Official dealers of the manufacture had low supplies of farm equipment during the third quarter of 1988. [Irrelevant]
(E)Eligible US farmers benefited from a federal drought-relief fund late in the third quarter of 1988. [Irrelevant]

Manager
Joined: 21 Dec 2007
Posts: 99
Followers: 1

Kudos [?]: 14 [0], given: 0

### Show Tags

24 Jan 2008, 11:53
blog wrote:
A united states manufacturer of farm equipment reported a 1988 third-quarter net income of $32 million, compared with$25.5 million in the third quarter of 1987. This increase was realized despite a drop in US retail sales of farm equipment toward the end of the third quarter of 1988 as a result of a drought.

Which of the following, if true, wud ci=ontribute most to an explanation of the increase in the manufacturer's net income?

(A)During the third quarter of 1988, the manufacturer announced that it wud add irrigation systems to its line of products.
(B)In the third quarter of 1988, the manufacturer paid no wages during a six-week stirke, but stocks on hand wre adequate to supply dealers.
(C)Sales in the US of farm equipment made and sold by foreign companies werre higher in the third quarter of 1988 than in any previous quarter.
(D)Official dealers of the manufacture had low supplies of farm equipment during the third quarter of 1988.
(E)Eligible US farmers benefited from a federal drought-relief fund late in the third quarter of 1988.

Since the supply was short in 3rd quarter of 1988 prices must have gone up and so must have sales...revenues must have increased owing to price effect...so D

Last edited by rafiaiqbal on 24 Jan 2008, 11:57, edited 3 times in total.
Manager
Joined: 21 Dec 2007
Posts: 99
Followers: 1

Kudos [?]: 14 [0], given: 0

### Show Tags

24 Jan 2008, 11:54
blog wrote:
A united states manufacturer of farm equipment reported a 1988 third-quarter net income of $32 million, compared with$25.5 million in the third quarter of 1987. This increase was realized despite a drop in US retail sales of farm equipment toward the end of the third quarter of 1988 as a result of a drought.

Which of the following, if true, wud ci=ontribute most to an explanation of the increase in the manufacturer's net income?

(A)During the third quarter of 1988, the manufacturer announced that it wud add irrigation systems to its line of products.
(B)In the third quarter of 1988, the manufacturer paid no wages during a six-week stirke, but stocks on hand wre adequate to supply dealers.
(C)Sales in the US of farm equipment made and sold by foreign companies werre higher in the third quarter of 1988 than in any previous quarter.
(D)Official dealers of the manufacture had low supplies of farm equipment during the third quarter of 1988.
(E)Eligible US farmers benefited from a federal drought-relief fund late in the third quarter of 1988.

Since the supply was short in 3rd quarter of 1988 prices must have gone up and so must have sales...revenues must have increased owing to price effect...so D
Manager
Joined: 18 May 2007
Posts: 56
Followers: 1

Kudos [?]: 21 [0], given: 0

### Show Tags

24 Jan 2008, 12:05
What is the OA?
Manager
Joined: 16 Jan 2007
Posts: 73
Followers: 1

Kudos [?]: 22 [0], given: 0

### Show Tags

24 Jan 2008, 12:50
IMO B.
Manager
Joined: 23 Jan 2008
Posts: 108
Followers: 2

Kudos [?]: 75 [0], given: 0

### Show Tags

24 Jan 2008, 13:15
bhatia_ash2002 wrote:
What is the OA?

i dont have ans for this .
Manager
Joined: 01 Nov 2007
Posts: 144
Followers: 1

Kudos [?]: 333 [0], given: 0

### Show Tags

24 Jan 2008, 14:38
What is the source of all these questions blog?

blog wrote:
bhatia_ash2002 wrote:
What is the OA?

i dont have ans for this .
Senior Manager
Joined: 19 Nov 2007
Posts: 470
Followers: 4

Kudos [?]: 193 [1] , given: 4

### Show Tags

24 Jan 2008, 19:58
1
KUDOS
Well I suggest there is no point in posting an argument whose logic cannot be corroborated.
It is frustrating to realize after coming at an answer, that it cannot be verified.
_________________

-Underline your question. It takes only a few seconds!
-Search before you post.

Intern
Joined: 07 Oct 2007
Posts: 20
Followers: 0

Kudos [?]: 6 [1] , given: 0

### Show Tags

25 Jan 2008, 02:10
1
KUDOS
Manager
Joined: 23 Jan 2008
Posts: 108
Followers: 2

Kudos [?]: 75 [0], given: 0

### Show Tags

25 Jan 2008, 10:33
JCLEONES wrote:
What is the source of all these questions blog?

i have some test paper with me so i was trying to solve it . i didnt know first that it didnt have answer in it. sorry.
Manager
Joined: 07 Dec 2006
Posts: 168
Followers: 1

Kudos [?]: 77 [0], given: 0

### Show Tags

25 Jan 2008, 21:54
FYI,
OA is B.
Manager
Joined: 01 Sep 2007
Posts: 100
Location: Astana
Followers: 1

Kudos [?]: 26 [1] , given: 0

### Show Tags

25 Jan 2008, 23:19
1
KUDOS
blog wrote:
A united states manufacturer of farm equipment reported a 1988 third-quarter net income of $32 million, compared with$25.5 million in the third quarter of 1987. This increase was realized despite a drop in US retail sales of farm equipment toward the end of the third quarter of 1988 as a result of a drought.

Which of the following, if true, wud ci=ontribute most to an explanation of the increase in the manufacturer's net income?

(A)During the third quarter of 1988, the manufacturer announced that it wud add irrigation systems to its line of products.
(B)In the third quarter of 1988, the manufacturer paid no wages during a six-week stirke, but stocks on hand wre adequate to supply dealers.
(C)Sales in the US of farm equipment made and sold by foreign companies werre higher in the third quarter of 1988 than in any previous quarter.
(D)Official dealers of the manufacture had low supplies of farm equipment during the third quarter of 1988.
(E)Eligible US farmers benefited from a federal drought-relief fund late in the third quarter of 1988.

the only problem with B for me is that not paying wages does not neccesarily mean the company will not accrue them. in light of this, i think D is equally ambigious (low inventories usually lead to a greater demand; e.g. US DOE tells the world every week how much crude they have, and this seriously impacts wti/brent qoutes). i think the language should be improved in this question.
Re: United states   [#permalink] 25 Jan 2008, 23:19
Similar topics Replies Last post
Similar
Topics:
The average life expectancy for the United States population 0 05 Jun 2015, 04:44
6 For years, employers in the United States have counted on a 8 07 Oct 2012, 19:18
GMAT prep- United states dollar 5 13 Jan 2009, 13:11
Exports of United States wood pulp will 6 06 Jul 2008, 09:01
In the United States, adults who don't graduate 5 13 Jun 2008, 01:23
Display posts from previous: Sort by