united lumber

Question

can some one please explain this
thanks in advance

Fijisurf · Answer

I think "C" goes beyond the scope. From the passage we cannot conclude whether de-branching and conversion into chips are the  ONLY  steps of the production.
Thus (D) is more in the scope, repeating exactly what is in the text.

mithilesh · Answer

To brief the argument:
XYZ company uses trees for two things:
1) Trunk ---> Lumber && Branches --> Wood chips --> Fiberboard
2) conversion cost same @ Site or @ factory
3) Wood chips occupy half the volume of Branches...

Option A: Out of scope as argument doesn't mention anything about wood chipping machine.
Option B: Not correct as Processing cost is same as mentioned in premise 2
Option C: Other process might be involved, as not mentioned in the passage that these are the only processes.
 Option D: As volume is less, we can infer that Transportation cost will be less 
Option E: Out of scope.

Hence option D.

PTK · Answer

United Lumber will use trees from its forest for two products. The tree trunks will be used for lumber and the branches converted into wood chips to make fiberboard.  The cost of this conversion  would be  the same whether done at  logging site, where the trees are debranched, or at the United's factory.  However, wood chips occupy less than half t he volume   of the branches from which they are made.
The information given, if accurate, most strongly supports which of the following?

A. Converting the branches into wood chips at the logging site would require transporting a fully assembled wood-chipping machine to and from the site.
B. It would be more economical to debranch the trees at the factory where the fireboard is manufactured.
C. The debranching of trees and the conversion of the branches into chips are the the only stages in the processing of branches that would be in the economic advantage to perform at the logging site.
D.  Transportation costs  from the logging site to the factory that  are determined by volume  of the cargo would be lower if the conversion into chips is done at the logging site rather than at the factory.
E. In the wood- processing industry, branches are used only for the production of wood chips for fibre board.

D is correct. see highlighted words.

united lumber

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