GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Sep 2018, 01:12

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Accountant: This company simply cannot afford to hire a new salesperso

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49277
Accountant: This company simply cannot afford to hire a new salesperso  [#permalink]

Show Tags

New post Updated on: 24 Jul 2018, 00:11
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

89% (01:00) correct 11% (00:58) wrong based on 90 sessions

HideShow timer Statistics

Accountant: This company simply cannot afford to hire a new salesperson.With salespeople we not only incur the salary and healthcare costs, but also the costs of a new computer, a business cell phone plan, and mileage reimbursement for driving to sales appointments. This new salesperson could raise our monthly expenses by a full 10%.

Which of the following, if true, most undermines the accountant’s argument?


A. The cost of a computer is a one-time cost and would therefore not affect the company’s recurring monthly expenses.

B. Many sales appointments can be conducted via free video conferencing software, thereby reducing the expenses related to mileage reimbursement.

C. The company’s closest competitor employs nearly twice as many salespeople.

D. Because of the demand for the company’s products, a new salesperson is likely to account for several times as much revenue as the cost of employing her.

E. The company will not be able to reduce its existing expenses by enough to counterbalance the costs of a new salesperson.

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics


Originally posted by Bunuel on 18 Jul 2018, 20:40.
Last edited by Skywalker18 on 24 Jul 2018, 00:11, edited 1 time in total.
formatted
Intern
Intern
avatar
B
Joined: 01 Jun 2018
Posts: 19
Re: Accountant: This company simply cannot afford to hire a new salesperso  [#permalink]

Show Tags

New post 18 Jul 2018, 20:46
It should be D, D introduce the case in which the revenue she made will outweight the cost, therefore counter the conclusion that the company cannot afford her.
Math Expert
User avatar
V
Joined: 02 Aug 2009
Posts: 6795
Re: Accountant: This company simply cannot afford to hire a new salesperso  [#permalink]

Show Tags

New post 18 Jul 2018, 20:50
Accountant: This company simply cannot afford to hire a new salesperson. \ With salespeople we not only incur the salary and healthcare costs, but also the costs of a new computer, a business cell phone plan, and mileage reimbursement for driving to sales appointments. This new salesperson could raise our monthly expenses by a full 10%.

Which of the following, if true, most undermines the accountant’s argument?


A. The cost of a computer is a one-time cost and would therefore not affect the company’s recurring monthly expenses.
We are just looking at only one part of the expenses .....

B. Many sales appointments can be conducted via free video conferencing software, thereby reducing the expenses related to mileage reimbursement.
Again, just one part of the expense are being addressed. These expenses may account for a very small %

C. The company’s closest competitor employs nearly twice as many salespeople
out of scope. We can't compare a different company as the environment and expense may be different.

D. Because of the demand for the company’s products, a new salesperson is likely to account for several times as much revenue as the cost of employing her.
Correct... Now this tells us that revenue that will be generated by that salesperson will be far more than expenses incurred

E. The company will not be able to reduce its existing expenses by enough to counterbalance the costs of a new salesperson.
opposite of what we are looking at


D
_________________

1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html
3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html


GMAT online Tutor

Verbal Forum Moderator
User avatar
V
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2110
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Accountant: This company simply cannot afford to hire a new salesperso  [#permalink]

Show Tags

New post 18 Jul 2018, 23:31
Accountant: This company simply cannot afford to hire a new salesperson. With salespeople we not only incur the salary and healthcare costs, but also the costs of a new computer, a business cell phone plan, and mileage reimbursement for driving to sales appointments. This new salesperson could raise our monthly expenses by a full 10%.

Type- Weaken
Boil it down - This company simply cannot afford to hire a new salesperson since this new salesperson could raise our monthly expenses by a full 10%.


A. The cost of a computer is a one-time cost and would therefore not affect the company’s recurring monthly expenses. - Incorrect- there are several other costs besides the cost of computer

B. Many sales appointments can be conducted via free video conferencing software, thereby reducing the expenses related to mileage reimbursement. - Incorrect - same as A

C. The company’s closest competitor employs nearly twice as many salespeople. - Irrelevant

D. Because of the demand for the company’s products, a new salesperson is likely to account for several times as much revenue as the cost of employing her. - Correct - so the new salesperson will lead to increase in net profit

E. The company will not be able to reduce its existing expenses by enough to counterbalance the costs of a new salesperson. - Incorrect - this goes against employing the salesperson but still does not address the output of this new employee

Answer D
_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49277
Re: Accountant: This company simply cannot afford to hire a new salesperso  [#permalink]

Show Tags

New post 22 Jul 2018, 09:08
Bunuel wrote:
Accountant: This company simply cannot afford to hire a new salesperson. \ With salespeople we not only incur the salary and healthcare costs, but also the costs of a new computer, a business cell phone plan, and mileage reimbursement for driving to sales appointments. This new salesperson could raise our monthly expenses by a full 10%.

Which of the following, if true, most undermines the accountant’s argument?


A. The cost of a computer is a one-time cost and would therefore not affect the company’s recurring monthly expenses.

B. Many sales appointments can be conducted via free video conferencing software, thereby reducing the expenses related to mileage reimbursement.

C. The company’s closest competitor employs nearly twice as many salespeople.

D. Because of the demand for the company’s products, a new salesperson is likely to account for several times as much revenue as the cost of employing her.

E. The company will not be able to reduce its existing expenses by enough to counterbalance the costs of a new salesperson.


VERITAS PREP OFFICIAL SOLUTION:



In this Weaken question, the accountant argues that "we cannot afford to hire a new salesperson," and then lists as premises the various costs that would add up to a 10% cost increase for the company. What is the gap in logic? Costs are only one part of the profit equation: there's also revenue. And the argument doesn't talk at all about the revenue that this new salesperson could bring in. You should seize on that gap and scan the argument for reasons that revenues would increase more than the costs would.

Choice (D) offers exactly that: if a new salesperson would bring in much more than it costs to employ her, the conclusion crumbles. (D) is correct.

Among the other choices:

(A) and (B) each only address one of the many costs of employing the new salesperson, so you're still stuck with the negative premise that monthly costs will be up by 10%. Remember: you cannot argue with the premises, only with the validity of the conclusion.

(C) misses the scope of the argument, which is only about whether the company can afford this new salesperson. Whether or not other companies can afford more employees doesn't factor in to this particular analysis of one company's financial situation.

And (E) actually strengthens the argument, if anything, demonstrating that the 10% incremental cost is unlikely to be mitigated by other savings.
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Re: Accountant: This company simply cannot afford to hire a new salesperso &nbs [#permalink] 22 Jul 2018, 09:08
Display posts from previous: Sort by

Accountant: This company simply cannot afford to hire a new salesperso

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.