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Re: Jinx inc, a manufacturer and retailer of Halloween costumes, should [#permalink]
Anshup wrote:
D

Sent from my CPH1727 using GMAT Club Forum mobile app


D, I believe strengthens the argument.

By saying J pays more, we are showing there is capacity to lower the wages, and thus strengthen the argument.

Thoughts?


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Re: Jinx inc, a manufacturer and retailer of Halloween costumes, should [#permalink]
devikeerthansr wrote:
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


B is correct.
GMAT Club Bot
Re: Jinx inc, a manufacturer and retailer of Halloween costumes, should [#permalink]
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