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Advanced Technology School and Computer Horizons provide training for information technology professionals. Both schools spend fifty percent of their budget on professor salaries. In a new strategic initiative Computer Horizons is attempting to gain higher profits than Advanced Technology. Computer Horizons should lower professor salaries to accomplish this goal.

Which of the following, if true, would most weaken the argument above?

Solution:
After reading the argument, we can in some sense understand that lower salaries can have some negatives attached to them. Though GMAT doesn't test any outside knowledge, it doesn't say don't bring outside logic or common sense. Salaries somewhat mirror your value and skill. So, higher salaries attract higher skills or quality. If you lower salaries you will not be able to attract a higher quality of skills.

A. The remainder of Computer Horizons budget contains a large number of fixed costs.: This might actually strengthen the argument because if the remainder of Computer Horizons budget contains a large number of fixed costs, then they cannot make changes to it, leaving only teacher salaries that can be changed to gain profit.

B. Reducing professor salaries would lead to lower teaching quality which would subsequently cause a decrease in student enrollment and tuition revenues.: Exactly what we want.

C. Last year Advanced Technology replaced Computer Horizons as the number one ranked technology school in the local newspaper's educational survey.: Irrelevant. We want to understand how reducing salaries might not be a good idea.

D. Computer Horizons professors earn fifteen percent more than their counterparts at Advanced Technology.: Again a strengthener, If Computer Horizons pays its professors fifteen percent more than their counterparts at Advanced Technology, then they might have a good reason to lower it a little to gain more profit.

E. Computer Horizons and Advanced Technology are the sole information technology schools in their metropolis.: Irrelevant. We cannot derive anything of value that adds to our understanding of the conclusion from this option.
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