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devikeerthansr
GMAT 1: 650 Q47 V32
Posts: 215
27 May 2018, 12:38
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B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
90% (01:15) correct
10%
(02:03)
wrong
based on 145
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Jinx inc, a manufacturer and retailer of Halloween costumes, should lower employee wages. This is so because employee wages account for two third the cost of manufacturing these costumes in both Jinx inc. and Hex inc., the direct competitor of Jinx inc., and maintaining a competitive advantage over Hex inc. is essential.
Which of the following, if true, would most weaken the argument above?
A Because they make a small number of made-to-order costumes, costume 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 Hex inc. has taken away twenty percent of Jinx inc. business over the last year.
D Jinx inc. pays its employees, on average, ten percent more than does Hex inc.
E Many people who work for costume manufacturing companies live in areas in which the costume manufacturer they work for is the only industry
Source: Crackverbal
Which of the following, if true, would most weaken the argument above?
A Because they make a small number of made-to-order costumes, costume 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 Hex inc. has taken away twenty percent of Jinx inc. business over the last year.
D Jinx inc. pays its employees, on average, ten percent more than does Hex inc.
E Many people who work for costume manufacturing companies live in areas in which the costume manufacturer they work for is the only industry
Source: Crackverbal
thinkTheta
Joined: 16 Apr 2018
Last visit: 17 Feb 2021
Posts: 53
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Location: India
Schools: ISB '21 (WA)
GMAT 1: 710 Q48 V38
27 May 2018, 20:56
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B, it clearly exposes a downside of lowering employee wages.
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Sent from my iPhone using GMAT Club Forum mobile app
27 May 2018, 22:00
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Looks like C. Coz this brings another perspective of Not to take decision on lowering of wages.. the reason for loss is due to loss in sales and not large part of wages alone
Sent from my BND-AL10 using GMAT Club Forum mobile app
Sent from my BND-AL10 using GMAT Club Forum mobile app
