Background: 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.
Premise: A shipping company proposes building a national distribution hub in one such region, routing most national shipments through the hub before final delivery elsewhere.
Conclusion: 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.
Asking share in bonus because building national distribution hub will lead to greater profit from substantial increase in shipment volume.
(A) Without the proposed hub, most shipments would bypass the remote region entirely.
This does not show why there will be increase in shipment volume of region. This shows current state and does not fills the gap.
(B) The federal government awards bonuses based on total shipment volume passing through a region, not just on shipments delivered locally.
Yes this shows the it is due to total shipment volume that the bonus is awarded on and thus increasing shipment volume will increase bonuses passing through the region. Hence correct.
(C) The regional government would only share bonuses if the new hub directly benefited local businesses.
This is irrelevant.
(D) Routing shipments through the new hub would not make delivery times longer than shipping via current routes.
Time of delivery is not in premise or in conclusion.
(E) Businesses in the remote region currently account for a small proportion of the shipping company’s national shipments.
This is irrelevant as it is not the interest of company's proportion of shipments that matters.
Hence B is correctBunuel
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.