Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 May 2017, 00:35

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The cost of producing radios in Country Q is ten percent

Author Message
VP
Joined: 25 Nov 2004
Posts: 1486
Followers: 7

Kudos [?]: 104 [0], given: 0

The cost of producing radios in Country Q is ten percent [#permalink]

### Show Tags

03 Feb 2005, 20:05
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 2 sessions

### HideShow timer Statistics

The cost of producing radios in Country Q is ten 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 ten percent below those in Country Y.
B. Importing radios from Country Q to Country Y will eliminate ten percent of the manufacturing jobs in Country Y.
C. The tariff on a radio imported from Country Q to Country Y is less than ten 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 ten percent of the cost of manufacturing the radio in Country Q.
E. It takes ten percent less time to manufacture a radio in Country Q than it does in Country Y.
SVP
Joined: 03 Jan 2005
Posts: 2236
Followers: 16

Kudos [?]: 342 [0], given: 0

### Show Tags

03 Feb 2005, 23:26
CQ<(1-10%)CY
CQ+t+f<CY
t<10%CY

(C)
VP
Joined: 26 Apr 2004
Posts: 1213
Location: Taiwan
Followers: 2

Kudos [?]: 687 [0], given: 0

### Show Tags

04 Feb 2005, 05:42
MA wrote:
The cost of producing radios in Country Q is ten 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 ten percent below those in Country Y.
B. Importing radios from Country Q to Country Y will eliminate ten percent of the manufacturing jobs in Country Y.
C. The tariff on a radio imported from Country Q to Country Y is less than ten 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 ten percent of the cost of manufacturing the radio in Country Q.
E. It takes ten percent less time to manufacture a radio in Country Q than it does in Country Y.

Background:
total cost of importing radios from Country Q: 90%C + fees + transporting tariff
total cost of manufacturing radios in Country Y: C + fees

Conclustion: 90%C + fees + transporting cost < C + fees

So, assumption: transporting tariff must less than 10%C

OA is C
Intern
Joined: 27 Dec 2004
Posts: 21
Followers: 0

Kudos [?]: 0 [0], given: 0

### Show Tags

04 Feb 2005, 09:30
C for me also.

A, B and E can be easily eliminated.

Labour costs being low in Q probably explains why costs are lower when manufactured in Q - but it does not result from the stem.
Reducing manufacturing jobs in Y do not have an influence on the charges of importing from Q.
E is probably a reason why the cost of manufacturing is lower but does not result from the statements in the stem.

It is clear from D total cost for importing from Q will rise to above cost of manufacturing in Y if D were true - hence it is not supported by the statements in the stem.
04 Feb 2005, 09:30
Similar topics Replies Last post
Similar
Topics:
In response to the increasing cost of producing energy 0 04 Mar 2011, 03:18
In response to the increasing cost of producing energy 0 06 Oct 2009, 12:20
In response to the increasing cost of producing energy 0 17 Aug 2009, 04:23
sales of cigarettes fell ten percent. In contrast, in the 22 30 Sep 2008, 00:01
In response to the increasing cost of producing energy 0 19 Jul 2008, 07:03
Display posts from previous: Sort by