Quote:
Harper's Pencils manufactures and sells the same pencils as Johnson's Supply. Employee wages account for forty percent of the cost of manufacturing pencils at both factories. Harper's is seeking a competitive edge over Johnson's supply. Therefore, to promote this end, Harper's should lower employee wages.
Which of the following, if true, seriously weakens the argument above?
A. Because they make a small number of specialty artist's pencils, pencil manufacturers cannot receive volume discounts on raw materials.
B. Lowering wages would reduce the quality of employee work and this reduced quality would lead to lowered sales.
C. Harper's Pencils has taken away twenty percent of Johnson's Supply business over the last year.
D. Johnson's Supply pays its employees, on average, ten percent more than does Harper's Pencils.
E. Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.
Correct answer: B
A. Incorrect - out of scope. (A) states that volume discounts are not a possibility, but it does not consider whether reducing employee wages is a good idea.
B. Correct. If lower wages reduce sales, then the argument will be weakened because Harper's competitive edge could be lessened if its sales fall.
C. Incorrect - out of scope. The past experience of Harper's Pencils bears nothing on whether the decision to reduce employee wages will increase its competitive edge.
D. Incorrect - insufficient information. The difference in wages paid at Johnson's Supply versus Harper's Pencils does not indicate that Harper's Pencils will suffer from reducing wages. Johnson's Supply could be paying too much as-is or have a different manufacturing footprint in higher-cost areas, for example.
E. Incorrect. "Many people" is difficult to parse and it is not clear whether "many people" applies to those in pencil manufacturing zones, or whether Harper's Pencils operates in those locations.
D.