A is misleading: the fact that workers are happy seems to strengthen the conclusion, but is a likely result and not an assumption
on which the argument depends - workers could be wrong or confused, and the plan would still be generous.
It's clear workers who get to 1,200 hours will have more relative vacation time - thus, the plan is generous if workers indeed get to that many hours. This is exactly what D tells us.
By process of elimination:
(A) Most current Armtech employees approve of the company's new vacation policy. - see above explanation
(B) A few Armtech employees leave the company before having worked 700 hours. this isn't relevant - these workers wouldn't have benefited from either plan
(C) Most Armtech employees were not aware that the company planned to change its vacation policy until after it had already done so. so what?
(D) A significant portion of Armtech employees stay with the company long enough to work for 1,200 hours. great! So most workers will enjoy more vacation time! Thus, the plan is generous
(E) Armtech's new vacation policy closely matches the vacation policies of competing temporary employment agencies. Irrelevant
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