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605-655 Level|   Assumption|         
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 09:41
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Fed govt is paying bonus for shipments delivered to remote regions. Argument is assuming national shipments will get a bonus too. It's not a volume's game, it is volume delivered in the local/remote regions

Only B satisfies that
Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 09:45
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Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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A. Weakening statement.
B. Not the discussion of awarding bonus for which shipment.
C. No mention of local businesses.
D.Correct, as it is the assumption on which this plan depends . If it Is negated then the argument falls apart.
E. current situation is not discussed rather what happens after the plan is implemented.
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 09:47
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The argument hinges on the idea that simply routing shipments through the new hub will boost the region’s bonus, which only works if the bonus is awarded on all volume passing through not just goods delivered to local businesses. That is exactly what choice (B) asserts.
So the assumption is:
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.

Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 09:51
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(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally

This is exactly what the company's argument requires in order for the regional government to benefit.
If the government only counts local deliveries, the company’s plan would not help the region.
-> This is the correct assumption.
A - Not the key assumption.
C - This talks about conditions for sharing, not whether the company’s argument works.
-> Not required for the logic to work.
D - This may impact feasibility but not the core logic of why the region would benefit.
E - This provides context, but again, doesn’t affect the logic of the bonus-based argument. Not required.

Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:06
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To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?
=> Company says more volume will pass through the region and this increased volume will greatly profit the goverment so thats why they need share of bonuses. thats the argument now lets see options

(A) Without the proposed hub, most shipments would bypass the remote region entirely. => Whether shipments will bypass or not is not concerned company says more volume will and thats why they need share of bonus. they don't need to assume this. so not the ans

(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally. => ok we know that federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. so company need this as assumption to come to conclusion of more profit for regional government and hence this can be the ans. lets keep this

(C) The regional government would only share bonuses if the new hub directly benefited local businesses. => ok this is not necessary as it says gove would share what but main logic should be gov will get more profit and hence they need share. so not the ans

(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes. => Delivery times are not the concern or not relevant for the the logic that we have derived above so not the ans

(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments. => This can explain why the company wants to build the hub there but it’s not necessary for the argument about bonus sharing so not the ans

hence Ans B
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:13
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let's check the options:

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
While this might be true and demonstrates the hub's impact, the bonus is tied to goods delivered to businesses within the region. Shipments "bypassing" or "passing through" without being delivered locally wouldn't directly contribute to the bonus as defined. This option doesn't directly connect passing-through volume to bonus payment.

(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
This is the crucial assumption. The company plans to route "most national shipments through the hub before final delivery elsewhere." If the federal government's bonus system only counts goods delivered locally within the region, then simply having goods pass through the hub on their way to other regions wouldn't increase the regional government's bonus. For the regional government to "greatly profit from the substantial increase in shipment volume" that includes national shipments merely passing through, the bonus system must count that transit volume. If the bonus only considers local deliveries, the company's plan of routing national shipments through the hub wouldn't necessarily increase the bonus significantly, thereby undermining their entire argument for a share.

(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
This concerns the negotiation for sharing the bonus, not the premise that the bonus itself would increase. The company's argument is about generating the increased bonus in the first place.

(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes. This is a concern for the shipping company's operational efficiency and customer satisfaction, but it doesn't directly impact whether the regional government receives a larger bonus based on shipment volume.

(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments. This would simply highlight that the increase in volume from national shipments would be very significant, but it doesn't clarify how that increased volume translates into a bonus under the federal government's rules. The core issue remains whether "total volume of goods delivered to businesses within their region" includes goods that just pass through the region's hub without being delivered there.

Therefore option (B) is the answer.
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:16
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NOTES:

Company will route shipments through your region so you get more bonus (volume increase) and we get a share of them.

Depends on what assumptions:

Review:

a) This might be true but is not required. small chance this is the answer
b) This is a necessary assumption! If shipments just go through region then there will be no bonus
c) This is more of a government conditional and not an assumption on the bonus structure
d) this does not effect any of the bonus structure
e) does not effect the routing through are for bonus structure

Answer is B
Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:30
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Quote:
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
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Premise:
- Fed pays bonuses based on total volume of goods delivered to businesses within the region
- Shipping company proposes national distribution hub where most national goods will pass through here before reaching elsewhere
- Shipping co. argues that this will increase shipment volume for regional government and therefore more bonus

(A) Without the proposed hub, most shipments would bypass the remote region entirely. = Make sense. KEEP
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally. Contradicting with the info in passage but if true, it can make sense. KEEP
(C) The regional government would only share bonuses if the new hub directly benefited local businesses. = Eliminated. We do not care whether the new hub directly benefited local businesses
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes. = Eliminated. We are not concerned with delivery time.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments. Eliminated. Small or Large proportion, it does not matter. We only concern how the hub will increase volume

Between A and B. Try negation technique
(A) With the proposed hub, most shipments would bypass the remote region entirely.
If most shipments bypass the remote region, then it is unlikely that there will be increase in volume. This destroys conclusion


(B) The federal government does not award bonuses based on total shipment volume passing through a region, but just on shipments delivered locally.
This is just stating what is already in the passage. Does not destroy conclusion. Eliminated

Answer = A
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:38
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(A) Without the proposed hub, most shipments would bypass the remote region entirely.
  • This strengthens the argument, but it doesn't necessarily need to be true for the argument to hold. This doesn't logically complete the argument; just says that these shipments will be brought into the region by the proposal of the shipping company only. Eliminate.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
  • This absolutely needs to be true. Notice how the argument mentions that the bonus is awarded based on the volume delivered TO the businesses in the region (internal). But the proposal says that they want to create a hub where they would route all national shipments and then ship them elsewhere (external). This assumption needs to be true in order for the shipping company to say that it wants a share of the bonuses. Keep.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
  • This is extreme with the word "only". But also it is logically incorrect. The govt doesn't mention benefits to local businesses as a prerequisite for getting bonuses. Eliminate.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
  • Delivery times are out of scope. Eliminate.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
  • Again, it does strengthen the argument that the shipping hub might have more customers in the remote region if the proposal passes, but it is not required for the argument to hold. Eliminate.

B seems to be the best choice.
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:42
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This is an assumtion question.

What we know:
The company's argument establishes a logical link between:
An increase in the volume of shipments transiting through the region thanks to the hub;
An increase in the "total volume of goods delivered to businesses in their region," as defined by the federal bounty program.

To fill this gap, we must add an element explaining how the hub can promote volume trade in remote regions.

IMO answer B directly removes the ambiguity in the bonus calculation.

If the bonus includes volume merely "passing through" a region, then routing "most national shipments through the hub before final delivery elsewhere" would indeed lead to a substantial increase in the bonus-qualifying volume for the regional government.
Using the technique of negation, we can assert that the company's argument that the region would benefit greatly from routing most domestic shipments through the hub would collapse. Therefore, the company's argument fundamentally depends on this assumption.
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:43
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(A) Without the proposed hub, most shipments would bypass the remote region entirely. This need not be considered as setting the hub would increase the shipment.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally. Correct. If federal govt. doesn't give bonus on these, then regional won't profit enough.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses. Not clear how local business would benefit.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes. Irrelevant
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments. Even if medium proportion, then also a new hub may increase the growth.

Ans B
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:46
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Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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Conclusion: Regional government would benefit -> Federal government would pay regional government.

(A) Without the proposed hub, most shipments would bypass the remote region entirely.

INCORRECT: The information is out of scope and not related to the conclusion.

(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.

CORRECT: Negate this " The federal government does not award bonuses based on total shipment volume passing through a region". The conclusion will fail. Hence, this is an assumption.

(C) The regional government would only share bonuses if the new hub directly benefited local businesses.

INCORRECT: Not related to the conclusion. Hence, we can eliminate this option.

(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.

INCORRECT: Not related to the conclusion. Hence, we can eliminate this option.

(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.

INCORRECT: The number of businesses is not taken into account. Hence, we can eliminate this option.

Option B
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 10:53
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Conclusion
Shipping companies reckon that since a transfer hub is set up, the freight volume across the region will boom, allowing regional governments to cash in on the feds' "bonus by freight volume," so they should kick some back to the company.

Premise
- The feds dish out bonuses to regional governments based on the "total freight delivered to local businesses" in that region.
- If a national hub is established in the region, most national freight will route through it first.

Assumption
For "increased freight transfer volume" to lead to "more federal bonuses for the regional government," it's assumed that:
"The feds count freight passing through the hub as 'delivered to the region,' not just the final delivery to local businesses."


Let's check the option.
A. It only states that freight would detour without the new hub, but doesn't mention whether bonuses are based on "passing through" or "final delivery." Irrelevant.
B. Only if the government bonuses include all freight passing through the region does the company's transfer volume count, making the conclusion valid. BINGO.
C. It discusses local government sharing funds with local businesses, which is related to how federal bonuses are calculated. Irrelevant.
D. It concerns whether delivery time increases, which doesn't affect the core logic of "more freight → more bonuses." Irrelevant.
E. It mentions that local businesses currently account for a small share of the company's total freight, regardless of whether bonuses are based on passing through or final delivery. Irrelevant.

This assumption matches option B:
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 11:07
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The company's argument - The company should get a share of the bonuses from the federal government for building a national distribution hub in a remote region, as the region would greatly profit from the substantial increase in shipment volume. The shipment volume would increase because the national distribution hub would route most national shipments through the hub before final delivery elsewhere.

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
Incorrect. The argument depends on whether the proposed hub would benefit the region by increasing the volume of goods delivered.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
Correct. If this is not true then the argument falls apart as the company would not be entitled to a share of the bonuses just for increasing the shipment volume since most shipments are delivered outside of the remote region.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
Incorrect. It is stated in the argument that the shipments are delivered elsewhere so we don't know if the increased shipment volume directly benefits the local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
Incorrect. Delivery time is not relevant to the argument. We are only concerned with the volume of goods.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
Incorrect. It is stated in the argument that the shipments are delivered elsewhere so we don't know if the increased shipment volume directly benefits the local businesses.

Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 11:22
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The correct answer choice is C
Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 11:23
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(A) Without the proposed hub, most shipments would bypass the remote region entirely.
Nowhere is such a constraint or by the company. If negating, then Without the proposed hub, most shipment would not bypass the remote region entirely. Not weaken
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
True, if it's on shipments delivered locally, then the company's reasoning will break
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
Not an assumption for the company.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
Delivery time is longer, not related to the argument
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments
account for a small proportion and new hub will increase number we don't know this
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 12:27
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The shipping company’s argument is based on the idea that regional governments will receive increased bonuses based on all the shipping volume routed through the region, not just goods consumed locally. Thus they’re assuming that:

The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.

This is exactly what supports the company’s claim that establishing a national hub which increases shipment throughput, even if not destined for the region, would increase the bonuses, and they want a share of them.

So the correct assumption is (B).
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 12:40
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Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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The question explains a situation, the Federal government has announced BONUSES to encourage regional economic developments. The bonus is based on the criteria on the total volume of businesses delivered within the region.

So, a Shipping company proposes to build a national hub at a region, routing more shipments to the hub before final delivery. But, on ONE condition - that the bonus amount should be shared. The company even predicts that the regional government will greatly benefit from this deal. It’s a win-win situation for both.

The argument of the shipping company, bonus sharing , regional hub, profits for regional government depends on which of the following assumptions ??

(A) Without the proposed hub, most shipments would bypass the remote region entirely.

It’s mentioned in question stem, that most shipments will be routed by this regional hub. We cannot be sure that this hub is bypassed entirely. This hub which attracts some shipment and has a potential for huge growth is chosen. So it’s, not the assumption.

(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.

The assumption is that the federal government bonus is based on the volume of shipment through the region, not just shipments which are delivered locally. If the bonuses are paid for goods delivered locally, then the hub would not be profitable for the shipping company. So, the company assumes the bonuses are earned if a shipment passes the hub, and not delivery.



(C) The regional government would only share bonuses if the new hub directly benefited local businesses.

If that’s the case, then the hub is not profitable and shipping company might not even plan to setup a hub. The key aspect of focus is volume and not benefiting local businesses. Hence, ruled out.

(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.

The delivery time taken is not compared to the bonuses provided. Hence, irrelevant.

(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.

This comparison is irrelevant. Hence eliminating it.


Option B
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 13:05
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A) Without the proposed hub, shipments would bypass the region.
Supports the idea that the hub increases volume in the region. Helpful, strengthens the argument

(B) Government bonuses are based on shipment volume passing through, not just delivered locally.
This option focuses on how the bonus is calculated ,which is relevant to regional govt profit ,but the company's argument hinges on the volume itself being an increase

(C) Government shares bonuses only if local businesses benefit.
Not necessary. The company's argument is about how much bonus the region receives, not conditions for sharing.

(D) Hub won't delay shipments.
Not relevant to the core argument about bonus eligibility.

(E) Remote region currently has few shipments.
Not necessary. Even if few shipments now, the argument is about the increase due to the hub.

Final answer (A)
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GMAT Club Olympics 2025 (Day 7): To encourage economic development in 08 Jul 2025, 13:07
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Ans. The answer to the question is B
Bunuel
To encourage economic development in remote regions, the federal government pays regional governments a bonus based on the total volume of goods delivered to businesses within their region. A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere. In exchange, the company requests a share of the bonuses, arguing that the regional government would greatly profit from the substantial increase in shipment volume.

The company’s argument depends on which of the following assumptions?

(A) Without the proposed hub, most shipments would bypass the remote region entirely.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.


 


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