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The cost of producing nuclear submarines in Atlantis is 10 percent

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The cost of producing nuclear submarines in Atlantis is 10 percent  [#permalink]

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New post 06 Oct 2018, 23:38
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

81% (01:19) correct 19% (01:38) wrong based on 120 sessions

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The cost of producing nuclear submarines in Atlantis is 10 percent less than the cost of producing nuclear submarines in Utopia. Even after transportation fees and tariff charges are added, it is still cheaper for a military establishment to import nuclear submarines from Atlantis to Utopia than to produce nuclear submarines in Utopia.

The statements above, if true, best support which of the following assertions?

(A) Labor costs in Atlantis are 10 percent below those in Utopia.
(B) Importing nuclear submarines from Atlantis to Utopia will eliminate 10 percent of the manufacturing jobs in Utopia.
(C) The tariff on a nuclear submarine imported from Atlantis to Utopia is less than 10 percent of the cost of manufacturing the nuclear submarine in Utopia.
(D) The fee for transporting a nuclear submarine from Atlantis to Utopia is more than 10 percent of the cost of manufacturing the nuclear submarine in Atlantis.
(E) It takes 10 percent less time to manufacture a nuclear submarine in Atlantis than it does in Utopia.

source - CrackVerbal

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Re: The cost of producing nuclear submarines in Atlantis is 10 percent  [#permalink]

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New post 06 Oct 2018, 23:55
It is (C) I believe. Since tariffs does not account for the great amount of the disparity between cost of production between 2 entities, C expesses it the clearest.
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Re: The cost of producing nuclear submarines in Atlantis is 10 percent  [#permalink]

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New post 07 Oct 2018, 00:05
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aragonn wrote:
The cost of producing nuclear submarines in Atlantis is 10 percent less than the cost of producing nuclear submarines in Utopia. Even after transportation fees and tariff charges are added, it is still cheaper for a military establishment to import nuclear submarines from Atlantis to Utopia than to produce nuclear submarines in Utopia.

The statements above, if true, best support which of the following assertions?

(A) Labor costs in Atlantis are 10 percent below those in Utopia.
(B) Importing nuclear submarines from Atlantis to Utopia will eliminate 10 percent of the manufacturing jobs in Utopia.
(C) The tariff on a nuclear submarine imported from Atlantis to Utopia is less than 10 percent of the cost of manufacturing the nuclear submarine in Utopia.
(D) The fee for transporting a nuclear submarine from Atlantis to Utopia is more than 10 percent of the cost of manufacturing the nuclear submarine in Atlantis.
(E) It takes 10 percent less time to manufacture a nuclear submarine in Atlantis than it does in Utopia.

source - CrackVerbal


Let's break down our passage:
1. cost in Atlantis 10% less than in Utopia
2. cheaper to import from Atlantis than build in Utopia, even with added costs

We'll first try to infer a likely assertion directly from our data, a Precise approach.:
If the import is cheaper even with the added costs, than the added costs must be less than 10% of the production price in Utopia.
If this option appears in our answer choices, we're done! Otherwise, we'll need to examine each answer choice individually.

In fact, this is exactly answer choice (C)! No need to check the other options...
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Re: The cost of producing nuclear submarines in Atlantis is 10 percent  [#permalink]

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New post 07 Oct 2018, 08:14
Definitely (C), similar OG Question to practice will be

https://gmatclub.com/forum/the-cost-of- ... fl=similar
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Re: The cost of producing nuclear submarines in Atlantis is 10 percent  [#permalink]

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New post 08 Oct 2018, 04:42

Official Explanation:



Answer: C

(A) We are not concerned with labor costs.
(B) There is no information to support this option.
(C) The fact is that the cost of producing nuclear submarines is 10% less in Atlantis than in Utopia, even with transportation and other costs included. The cost to import nuclear submarine to Utopia from Atlantis will still be cheaper. Therefore, the import related tariff is less than 10% of the cost of manufacturing in Utopia. This is expressed in option C, which is the correct answer.
(D) This doesn’t relate to the reduction in the cost.
(E) This option talks about time. We are concerned about the costs.
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Thanks!
Do give some kudos.

Simple strategy:
“Once you’ve eliminated the impossible, whatever remains, however improbable, must be the truth.”

Want to improve your Score:
GMAT Ninja YouTube! Series 1| GMAT Ninja YouTube! Series 2 | How to Improve GMAT Quant from Q49 to a Perfect Q51

My Notes:
Reading comprehension | Critical Reasoning | Absolute Phrases | Subjunctive Mood

GMAT Club Bot
Re: The cost of producing nuclear submarines in Atlantis is 10 percent &nbs [#permalink] 08 Oct 2018, 04:42
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The cost of producing nuclear submarines in Atlantis is 10 percent

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