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# A company that manufactures heavy industrial equipment

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Manager
Joined: 15 Nov 2006
Posts: 216

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Location: Ohio
A company that manufactures heavy industrial equipment [#permalink]

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06 Apr 2007, 20:41
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Difficulty:

(N/A)

Question Stats:

100% (01:17) correct 0% (00:00) wrong based on 6 sessions

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A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period.
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed

Kudos [?]: 78 [0], given: 0

Manager
Joined: 20 Nov 2006
Posts: 213

Kudos [?]: 18 [0], given: 0

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06 Apr 2007, 20:57
nitinneha wrote:
A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters. - this will maintain the operating cost + cost of the new equipment.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment - This seems to be a better option as this will reduce the operating cost of teh machine there by reducing the total operating cost.

(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period. - this will increase the operating cost.

(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment - again it will not affect the operating cost.

(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed - This in no way decrease the operating cost.

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Senior Manager
Joined: 04 Mar 2007
Posts: 431

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07 Apr 2007, 14:55
Good explanation, surbab
I agree. B it is

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Manager
Joined: 26 Feb 2007
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07 Apr 2007, 15:18
B.

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Senior Manager
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Location: California

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07 Apr 2007, 16:22
yup B..

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Manager
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Location: Ohio

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07 Apr 2007, 16:39
OA is B

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Manager
Joined: 28 Feb 2007
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Location: California

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07 Apr 2007, 18:13
nitinneha wrote:
A company that manufactures heavy industrial equipment employs dozens of people in jobs tat are considered quite hazardous. The company obey federal regulations governing workplace safety, and to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expansive air filtering equipment. However, despite the expense of the air filtering equipment , the company's operating cost for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?
(A)Over half the company's expenditures to maintain worker safety go to pay for protective garments;yet only a small percentage of such expenditures go to pay for nose and mouth filters.
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment
(C)The company's cost of labor, which make up a large fraction of operating costs, increased during the same period.
(D)When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment
(E)The majority of company's employees work in the area of the plant in which the air filtering equipment was installed

Another B

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Director
Joined: 24 Aug 2006
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Location: Dallas, Texas

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07 Apr 2007, 23:34
B !
_________________

"Education is what remains when one has forgotten everything he learned in school."

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Manager
Joined: 23 Mar 2007
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19 Apr 2007, 12:21
Finally a CR which I got right

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Director
Joined: 23 Jun 2005
Posts: 840

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GMAT 1: 740 Q48 V42

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20 Apr 2007, 08:31
(B)Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment

Only B provides an explanation as to why the operating costs would have been lower. If the newly installed air filters remove the necessity to spend money on protecting the equipment from particulate contamination, then that could explain how they achieved lower operating costs.

Anand

Kudos [?]: 86 [0], given: 1

20 Apr 2007, 08:31
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