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Factory Y is greatly dependent upon high-quality water for the natural

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Factory Y is greatly dependent upon high-quality water for the natural [#permalink]

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New post 25 Feb 2016, 09:53
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Question Stats:

59% (01:20) correct 41% (01:20) wrong based on 210 sessions

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Factory Y is greatly dependent upon high-quality water for the natural beverages that it produces. To reduce its dependency on Company Z, a supplier of pure spring water, Factory Y has developed a filtration station which, although awaiting final official approval, can produce high-quality water at a rate high enough to keep all three of its juice manufacturing lines running properly. Once the filtration station is approved, Factory Y will never again be in need of the water supplied by Company Z.

Which of the following would it be most useful to establish in order to evaluate the argument?

A. Does the filtration station have to be approved by Factory Y's management or by a government authority?
B. Is the demand for Factory Y's juice, and consequently the need for additional manufacturing lines, on the rise?
C. Will the profits created by Factory Y, at some point in the future, exceed those created by Company Z ?
D. Is the quality of the water supplied by Company Z higher or lower than that produced by Factory Y's station?
E. Is the water supplied by Company Z also used by the competitors of Factory Y?
[Reveal] Spoiler: OA

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Re: Factory Y is greatly dependent upon high-quality water for the natural [#permalink]

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New post 27 Feb 2016, 00:56
Factory Y is dependent on Company Z, which produces high quality water, to manufacture juices. To reduce dependency on Company Z, Factory Y designs its own station to produce high quality water and this will be sufficient to handle its 3 manufacturing lines.

To evaluate the above argument we have to check whether dependency on Company Z will completely be eliminated or not.

A. Does the filtration station have to be approved by Factory Y's management or by a government authority? - Incorrect - Factory Y will only use the equipment after government approval
B. Is the demand for Factory Y's juice, and consequently the need for additional manufacturing lines, on the rise? - Correct - If additional manufacturing lines are required then more water is required and Factory Y has to depend on Company Z. If the manufacturing lines are constant then Factory Y can be self reliant on its water station.
C. Will the profits created by Factory Y, at some point in the future, exceed those created by Company Z ? - Incorrect - We are not concerned about the profits.
D. Is the quality of the water supplied by Company Z higher or lower than that produced by Factory Y's station? - Incorrect - Argument states Factory Y produces high quality water as Company Z did.
E. Is the water supplied by Company Z also used by the competitors of Factory Y? - Incorrect - Irrelevant

Answer: B

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Factory Y is greatly dependent upon high-quality water for the natural [#permalink]

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New post 04 Nov 2017, 07:00
Factory Y is greatly dependent upon high-quality water for the natural beverages that it produces. To reduce its dependency on Company Z, a supplier of pure spring water, Factory Y has developed a filtration station which, although awaiting final official approval, can produce high-quality water at a rate high enough to keep all three of its juice manufacturing lines running properly. Once the filtration station is approved, Factory Y will never again be in need of the water supplied by Company Z.

Which of the following would it be most useful to establish in order to evaluate the argument?


(a) Does the filtration station have to be approved by Factory Y's management or by a government authority?
(b) Is the demand for Factory Y's juice, and consequently the need for additional manufacturing lines, on the rise?
(c) Will the profits created by Factory Y, at some point in the future, exceed those created by Company Z ?
(d) Is the quality of the water supplied by Company Z higher or lower than that produced by Factory Y's station?
(e) Is the water supplied by Company Z also used by the competitors of Factory Y?

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Re: Factory Y is greatly dependent upon high-quality water for the natural [#permalink]

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New post 04 Nov 2017, 07:59
B looks good that if in future demand for juice is on rise then filtratiin station prod. may not be sufficient or if new juice production line is in offering

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Factory Y is greatly dependent upon high-quality water for the natural [#permalink]

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New post 04 Nov 2017, 14:08
n2223 wrote:
Factory Y is greatly dependent upon high-quality water for the natural beverages that it produces. To reduce its dependency on Company Z, a supplier of pure spring water, Factory Y has developed a filtration station which, although awaiting final official approval, can produce high-quality water at a rate high enough to keep all three of its juice manufacturing lines running properly. Once the filtration station is approved, Factory Y will never again be in need of the water supplied by Company Z.

Which of the following would it be most useful to establish in order to evaluate the argument?

I think key argument is if new filtration system is approved, Y will never again be in need of water from Z.

A. Does the filtration station have to be approved by Factory Y's management or by a government authority?Irrelevant. if A/B/both, it doesn't matter. Lets say it is approved, does it mean that it will never need more water from Z. no.
B. Is the demand for Factory Y's juice, and consequently the need for additional manufacturing lines, on the rise?Yes, this is the right question. If it is on the rise, may be our filtration system can handle max 3 plants and we might have to knock on Z doors again for more water :p
C. Will the profits created by Factory Y, at some point in the future, exceed those created by Company Z ?Irrelevant. if yes, how does that matter?. it still might/might not require more water from Z
D. Is the quality of the water supplied by Company Z higher or lower than that produced by Factory Y's station?That's a good point.but lets dig deep. lets say it is better than Y's new quality standard. but Y's new standard must have been already approved by the government. does that answer if we would ever need more water from Z. no
E. Is the water supplied by Company Z also used by the competitors of Factory Y?Perfectly useless option. Yes/No, doesn't help answer the right question (would we need more water from Z ever again?)


This is my second detailed answer on the club. And i am loving it. Keep them coming!!!

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Factory Y is greatly dependent upon high-quality water for the natural   [#permalink] 04 Nov 2017, 14:08
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Factory Y is greatly dependent upon high-quality water for the natural

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