GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 16 Aug 2018, 10:58

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

The cost of producing radios in country Q is 10 percent less than the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Manager
Manager
avatar
Joined: 23 Apr 2010
Posts: 118
Location: Tx
Schools: NYU,UCLA,BOOTH,STANFORD
The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 08:58
4
9
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

86% (01:10) correct 14% (01:19) wrong based on 1785 sessions

HideShow timer Statistics

The cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

(A) Labor costs in country Q are 10 percent below those in Country Y.

(B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

(C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

(D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

(E) It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y.

_________________

This is not finished here...Watch me.....

Manager
Manager
avatar
Joined: 23 Apr 2010
Posts: 118
Location: Tx
Schools: NYU,UCLA,BOOTH,STANFORD
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 09:14
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.
_________________

This is not finished here...Watch me.....

Senior Manager
Senior Manager
avatar
Joined: 25 Jun 2009
Posts: 285
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 09:35
2
2
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

A) Labor costs in country Q are 10 percent below those in Country Y. --- Not sure, it could be possible that labour cost is around 20 % lower but the transporation cost is a bit higher but over all its still chaep to get the radios from the country Q.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.-- Not neccesary, it could be possible that radios getting manufactured in country Y is only say 2 % because radios have always been imported from country Q

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y --- Correct, this is what the stem is also saying that over all cost is less, which means transporation cost + import cost is less than 10 %

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q -- Incorrect, If it would have been more than the over all cost would not have been less than 10 % difference.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y. -- Irrelevalent

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.


C is the answer
Manager
Manager
avatar
Joined: 16 Mar 2010
Posts: 113
Location: Halifax, Canada
Schools: Dalhousie School of Business (Corporate Residency MBA)
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 10:23
2
My guess is C, reasoning follows:
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

A) Labor costs in country Q are 10 percent below those in Country Y. 'Labor' is a bit out of scope. What if the radios are made entirely by machines?

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y. This wildly assumes a direct relationship between the external markets and Country Y's manufacturing industry. It also implies that all manufacturing jobs in Country Y are related to radio.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y. This is true because it says: "Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y." If the tariff was 10 percent or more, then it would NOT be cheaper. But it is cheaper, so it must be less.

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q. This follows similar logic as above... except the 10% here is less meaningful as a benchmark because Q+10% of Q is not the same as Y -10% of Y. Either way it falls through.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y. Time = money, but there is nothing here to suggest the tradeoff is a perfect 1:1 ratio. :)

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.
Manager
Manager
avatar
Joined: 23 Apr 2010
Posts: 118
Location: Tx
Schools: NYU,UCLA,BOOTH,STANFORD
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 12:58
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?
_________________

This is not finished here...Watch me.....

Manager
Manager
avatar
Joined: 16 Mar 2010
Posts: 113
Location: Halifax, Canada
Schools: Dalhousie School of Business (Corporate Residency MBA)
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 13:33
1
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

It's all about the wording of the question.

The part that says: "the statement above, if true" is key. You have to assume everything it says is true, meaning that it most definitely IS cheaper to import from Q than to produce in Y, even with tariff + transport. Essentially, we DO have information about the transport fees; we know that no matter what the tariff fee is, they're never going to make it more expensive than Y.

So let's say cost of Y = 100%

We know that Q = 90% (of Y)

We know that Q + tariff + transportation < 100%

Therefore 0% <= tariff < 10% AND 0% <= transportation < 10% ... we just don't know specifically.

Answer C basically says Tariff is less than 10% of Y. True!
Answer D says Transportation is > 10% of Q... which is hard to determine not necessarily true.

Does that help?
Senior Manager
Senior Manager
User avatar
B
Affiliations: SPG
Joined: 15 Nov 2006
Posts: 309
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 13:43
1
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?


let me explain this through maths

cost in Q is 10% percent less than cost in Y [cost in Q = 0.9*cost in Y]
cost in Q + transport + tariff < cost in Y
transport + tariff < cost in Y - cost in Q

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

this must mean that C is correct
tariff < 10% of cost in Y

C it is


_________________

press kudos, if you like the explanation, appreciate the effort or encourage people to respond.

Download the Ultimate SC Flashcards

Manager
Manager
avatar
Joined: 23 Apr 2010
Posts: 118
Location: Tx
Schools: NYU,UCLA,BOOTH,STANFORD
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 14:35
dimitri92 wrote:
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?


let me explain this through maths

cost in Q is 10% percent less than cost in Y [cost in Q = 0.9*cost in Y]
cost in Q + transport + tariff < cost in Y
transport + tariff < cost in Y - cost in Q

transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

this must mean that C is correct
tariff < 10% of cost in Y

C it is



can you explain me what if transportain fee is way more then tariff. There is no information about transformation fee. Am i wrong?
_________________

This is not finished here...Watch me.....

Manager
Manager
avatar
Joined: 23 Apr 2010
Posts: 118
Location: Tx
Schools: NYU,UCLA,BOOTH,STANFORD
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 14:38
dalmba wrote:
fatihaysu wrote:
yes but guys c told about tariff,the thing confused my mind what about transportain fees. Tariff can be less than 10 pecent but there is no information about transportaion fees. Maybe with it it will more expensive then producing it in county Y.

that point makes me confused?

It's all about the wording of the question.

The part that says: "the statement above, if true" is key. You have to assume everything it says is true, meaning that it most definitely IS cheaper to import from Q than to produce in Y, even with tariff + transport. Essentially, we DO have information about the transport fees; we know that no matter what the tariff fee is, they're never going to make it more expensive than Y.

So let's say cost of Y = 100%

We know that Q = 90% (of Y)

We know that Q + tariff + transportation < 100%

Therefore 0% <= tariff < 10% AND 0% <= transportation < 10% ... we just don't know specifically.

Answer C basically says Tariff is less than 10% of Y. True!
Answer D says Transportation is > 10% of Q... which is hard to determine not necessarily true.

Does that help?



Definietly. I am sorry i didnt read yours first then i asked same quation to the other friend. Yeah you are right. Fee + tariff cant be expensive more then producing it in country Y. even we dont know how much fee is

Thanks guyzz...
_________________

This is not finished here...Watch me.....

Senior Manager
Senior Manager
User avatar
B
Affiliations: SPG
Joined: 15 Nov 2006
Posts: 309
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 21 May 2010, 23:16
1
fatihaysu wrote:

can you explain me what if transportain fee is way more then tariff. There is no information about transformation fee. Am i wrong?


transport + tariff < 0.1 cost in Y [cost in Q = 0.9*cost in Y]

even if the transport fee is way greater than tariff ... the sum of both has to be less than 10% of cost in Y ... and if this is the case the tariff MUST be less than 10%

you usually don't have enough time in gmat to do such problems mathematically ... it was just to explain you .... the quickest way to do the problem is to pick up premises and use them.

premise: cost in Q is 10% less than cost in Y
premise: even if we add transport and tariff, cost in Q is still less than cost in Y

if both premises are true ... transport + tariff just have a margin of 10% of cost in Y .. they cant be more than 10% of cost in Y otherwise radios will get more expensive to import

HTH

don't forget to press KUDOS if you like the explanation ;)

_________________

press kudos, if you like the explanation, appreciate the effort or encourage people to respond.

Download the Ultimate SC Flashcards

VP
VP
avatar
Joined: 17 Feb 2010
Posts: 1259
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 24 May 2010, 11:24
1
C should be the one.

cost of producing radio in country Y = $100
cost of producing radio in country Q (10% less) = $90

The argument says it is cheaper for Y to import radios from Q rather than producing them in-house...that means even when Y imports radios from Q it will cost less than $100.

option C says....The tariff on a radio imported from Q to Y is less than 10 percent of the cost of manufacturing the radio in counrty Y.....which goes well with the argument.
Current Student
avatar
Affiliations: ?
Joined: 20 Jul 2009
Posts: 185
Location: Africa/Europe
Schools: Kellogg; Ross ($$); Tuck
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 24 May 2010, 15:48
I agree with the above explanation. C is the one.
what is OA?
Manager
Manager
User avatar
Status: Target MBA
Joined: 20 Jul 2010
Posts: 159
Location: Singapore
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 25 Sep 2011, 10:10
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.

Guyz i have quastions about the right answer so i will wait for the answers first. Than i will discuss why i am not satisfied by the answer explanation.


1. Cost of manufacturing in Country Q is 10% less than that in country Y
2. Even after import from country Q to country Y, the manufacturing price is still less than that in county Y.
It means that import duties are less than 10% of the cost of manufacturing.
Hence answer should be (C)
_________________

Thanks and Regards,
GM.

Intern
Intern
avatar
Joined: 30 Sep 2012
Posts: 12
Location: India
Concentration: Strategy, Finance
GMAT 1: 680 Q49 V32
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 30 Sep 2012, 02:39
3
Question Stem

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

Inference Question. So Answer MUST BE TRUE.

Argument

The cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

Pre-thinking
Transportation Fees and Tariff charges are less than 10 percent of he cost of producing radios in Country Y.

Answer Choices

A) Labor costs in country Q are 10 percent below those in Country Y.
INCORRECT ANSWER - The argument says that cost of producing radios in Country Q is 10 percent less. We have no information of what consists of this cost. Labor costs may be one of the components. So this option may not be true.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
INCORRECT ANSWER - Elimination of jobs is Outside the Scope of the argument. This argument only focuses on the cost of production

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in country Y
CORRECT ANSWER - Refer to this second sentence - "Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y". So if the Q is 10 percent cheaper and some additional charges are required and still Q is cheaper than Y, means that tariff (and transportation fees, individually or together) is less than 10 percent of the cost of manufacturing the radio in country Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
INCORRECT ANSWER - This cannot be true. It is opposite of what can be inferred from the argument.

E) It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y.
INCORRECT ANSWER - Time to manufacture is outside the scope of the argument.
_________________

Regards,
gmatsuperstar

VP
VP
avatar
S
Joined: 09 Jun 2010
Posts: 1153
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 03 Oct 2012, 03:14
1
Though many expert advise us not to prethink an inference before going to answer choices, other expert advise us to do so.
I myself see that prethinking an inference before going to answer choices is effective not only for quantitative based inference questions but also for other kinds of inference questions because prethinking helps us better understand and absorb the argument, analysing answer choices better. non natives normally can not absorb well what they read and this is the reason why prethink help us tremendously. And, I think that prethinking is the only method to test that we understand the argument well. Of course, we will not prethink an inference exhaustively. In many questions, we just try to prethink. But just doing so helps us a lot.

in some cases, prethinking an inference bring us the inference which is exactly the correct answer. great in this case.

I want the experts to discuss more on this point. Thank you.
_________________

visit my facebook to help me.
on facebook, my name is: thang thang thang

Intern
Intern
avatar
Joined: 22 Oct 2012
Posts: 22
Concentration: Entrepreneurship, Marketing
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 24 May 2013, 07:04
C it is..:)
Intern
Intern
avatar
B
Joined: 12 Mar 2017
Posts: 49
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 28 Jul 2017, 10:02
he cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

This is a classic case of rigorous POE.

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

A) Labor costs in country Q are 10 percent below those in Country Y.
Maybe the raw material costs are 10% low.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.
Maybe it won't.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y
After rigorous POE and removing all out of scope statements, i reached to this part.

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q
We arenot sure about the transporting fees.

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.
We do not know about the time.
Director
Director
avatar
S
Joined: 12 Nov 2016
Posts: 772
Location: United States
Schools: Yale '18
GMAT 1: 650 Q43 V37
GRE 1: Q157 V158
GPA: 2.66
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 15 Aug 2017, 22:38
fatihaysu wrote:
the cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y.Even after transportation fees and tariff charges are added,it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

A) Labor costs in country Q are 10 percent below those in Country Y.

B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

E) It takes 10 percent less time to manufatcture a radio in country Q than it does in Country Y.


Perhaps using some math would not hurt us- even though this is part of the verbal section of the GMAT we can still use math to clarify the stimulus

Cost of Production in Q - $90.00

Cost of Production in Y = $100.00

10& of the Cost of production in Y = $10.00

Cost of tariff and export in Q < $10.00

C
Manager
Manager
User avatar
S
Joined: 15 Nov 2016
Posts: 137
Concentration: General Management, Leadership
CAT Tests
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 03 Apr 2018, 06:20
Say
COP in Q = 100
COP in Y = 110 (as the COP in Y is 10% higher)

Transport + Tariff + 100 (COP) < 110 (COP of Y)

What inferences can we make?
We can certainly say that transport and tariff together is less than 10% of the COP of Y

That’s exactly what option C says.
VP
VP
User avatar
D
Status: It's near - I can see.
Joined: 13 Apr 2013
Posts: 1216
Location: India
Concentration: International Business, Operations
GMAT 1: 480 Q38 V22
GPA: 3.01
WE: Engineering (Consulting)
Premium Member Reviews Badge CAT Tests
Re: The cost of producing radios in country Q is 10 percent less than the  [#permalink]

Show Tags

New post 04 Apr 2018, 06:41
fatihaysu wrote:
The cost of producing radios in country Q is 10 percent less than the cost of producing radios in country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from country Q to Country Y than to produce radios in Country Y.

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

(A) Labor costs in country Q are 10 percent below those in Country Y.

(B) Importing radios from country Q to country Y will eliminate 10 percent of the manufacturing jobs in Country Y.

(C) The tariff on a radio imported from country Q to country Y is less than 10 percent of the cost of manufacturing the radio in counrty Y

(D) The fee for transporting a radio from country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in country Q

(E) It takes 10 percent less time to manufacture a radio in country Q than it does in Country Y.


Answer choice A, B, and E are totally out of scope.

D is opposite.

Choice C is a paraphrased from the passage.

Hence (C)
_________________

"Do not watch clock; Do what it does. KEEP GOING."

Re: The cost of producing radios in country Q is 10 percent less than the &nbs [#permalink] 04 Apr 2018, 06:41
Display posts from previous: Sort by

The cost of producing radios in country Q is 10 percent less than the

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.