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# The head baker at Barry s Bagels can either purchase flour

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Retired Moderator
Joined: 23 Oct 2011
Posts: 262
The head baker at Barry s Bagels can either purchase flour [#permalink]

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28 Apr 2012, 19:48
2
6
00:00

Difficulty:

15% (low)

Question Stats:

79% (01:10) correct 21% (01:33) wrong based on 769 sessions

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The head baker at Barry’s Bagels can either purchase flour in-person from the local flour mill, Larry’s Local Mill, or order a shipment of flour from an out-of-state mill, Isadore’s
Interstate Mill. The cost of the flour from Isadore’s Interstate Mill is 10 percent less than the cost of the flour from Larry’s Local Mill. Even after shipping and handling fees are added, it
is still cheaper to order flour that has to be shipped from Isadore’s than to buy flour locally from Larry’s. The statements above, if true, best support which of the following assertions?

A) Production costs at Isadore’s Interstate Mill are 10 percent below those at Larry’s Local Mill.
b) Buying flour from Isadore’s Interstate Mill will eliminate 10 percent of the local flour mill jobs.
c) The shipping and handling fees for a batch of flour purchased from Isadore’s Interstate Mill are less than 10 percent of the cost of an identical batch of flour purchased from Larry’s
Local Mill.
d) The shipping and handling fees for a batch of flour purchased from Isadore’s Interstate Mill are more than 10 percent of the cost of Isadore’s flour.
e) Isadore’s Interstate Mill produces flour 10% more efficiently than Larry’s Local Mill does.

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Re: The head baker at Barry s Bagels can either purchase flour [#permalink]

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17 Jul 2012, 02:00
1
(C) wins
c) The shipping and handling fees for a batch of flour purchased from Isadore’s Interstate Mill
are less than 10 percent of the cost of an identical batch of flour purchased from Larry’s
Local Mill.

cost at larry mill of a given quantity of flour = $100 cost at isadore for the same =$90
shipping etc shud be less than \$10 to stay prfitable at isadore, so (c)wins
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Re: The head baker at Barry s Bagels can either purchase flour [#permalink]

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03 Jul 2017, 07:30
"local purchase" will not count the handle and shipping fees, but purchase from interstate will => C is correct
Senior Manager
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Location: United States (CA)
Concentration: Finance, Strategy
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Re: The head baker at Barry s Bagels can either purchase flour [#permalink]

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18 Sep 2017, 14:49
is this correctly categorized as a sub-600 question?

i got to the right answer but definitely struck me as something at least in the 600-700+ range...

anyways, by using POE you can quickly elim A, B & E.
- main source of trickery is between C & D.
-> remember: passage says [out of state] < [local], so... [flour + shipping & handling] < [flour]. More specifically, [flour + S&H] = 9/10 [flour]. So this means S&H < 10%!
Senior Manager
Joined: 26 Dec 2015
Posts: 277
Location: United States (CA)
Concentration: Finance, Strategy
WE: Investment Banking (Venture Capital)
Re: The head baker at Barry s Bagels can either purchase flour [#permalink]

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18 Sep 2017, 14:52
is this correctly categorized as a sub-600 question?

i got to the right answer but definitely struck me as something at least in the 600-700+ range...

anyways, by using POE you can quickly elim A, B & E.
- main source of trickery is between C & D.
-> passage says [out of state] < [local]
->[flour + shipping & handling] < [flour].
->[flour + S&H] = $$\frac{9}{10}$$[flour].
->So this means S&H < 10%!
Re: The head baker at Barry s Bagels can either purchase flour   [#permalink] 18 Sep 2017, 14:52
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