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Top Line Technologies and Eureka Industries distribute the

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Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 04 Dec 2013, 01:37
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Top Line Technologies and Eureka Industries distribute the same kind of rechargeable batteries to national electronic store chains. Employee wages comprise 38 percent of each company's total annual costs. In order to gain a competitive advantage over Eureka Industries, Top Line Technologies has proposed slashing employee wages by 10 percent.

Which of the following, if true, would most strengthen the argument above?

A. Top Line Technologies' rechargeable batteries have received more consistent consumer approval ratings than have Eureka Industries'.
B. Top Line Technologies will have to reduce the number of rechargeable batteries it distributes to client stores.
C. Eureka Industries is headquartered in a city that has a higher cost of living than does the city where Top Line Technologies is headquartered.
D. Top Line Technologies will begin distributing lower-quality rechargeable batteries.
E. Lowered employee wages have no effect on the quantity of rechargeable batteries that can be distributed to the client stores.
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 04 Dec 2013, 01:41
Can someone explain me why C is not a weakener?

if Top Line Technologies is headquartered in a city where the cost of living is lesser than that of the city in which Eureka industries is headquartered, and given that Employee wages constitute the same percentage for both the companies, it is clear that employees at Top Line Technologies are overpaid and hence a cut down of 10% on wages should not cause any effect in the quality or quantity.
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 04 Dec 2013, 09:04
rajarams wrote:
Top Line Technologies and Eureka Industries distribute the same kind of rechargeable batteries to national electronic store chains. Employee wages comprise 38 percent of each company's total annual costs. In order to gain a competitive advantage over Eureka Industries, Top Line Technologies has proposed slashing employee wages by 10 percent.


Top line and Eureka produces same kind of batteries.

Employee cost Comprises of 38% , Other Operating Costs comprises of 62% of the total Cost.

Top Line proposes to reduce employee costs by 10% , to gain competitive advantage.


Hence we can safely assume that this reduced cost benefit will be passed on to the Customers and the firm can gain a competitive advantage by doing so....

Which of the following, if true, would most strengthen the argument above?

A. Top Line Technologies' rechargeable batteries have received more consistent consumer approval ratings than have Eureka Industries'. - Out of scope.

B. Top Line Technologies will have to reduce the number of rechargeable batteries it distributes to client stores. - Desired effect of gaining competitive advantage will not be achieved.

C. Eureka Industries is head quartered in a city that has a higher cost of living than does the city where Top Line Technologies is head quartered.- Out of Scope.

D. Top Line Technologies will begin distributing lower-quality rechargeable batteries. - Absolutely not , if the company compromises with Quality then it can't gain a competitive advantage.

E. Lowered employee wages have no effect on the quantity of rechargeable batteries that can be distributed to the client stores. - Definitely the company is not compromising on Quality as well as offering Cheaper Product , certainly this will lead to the desired effect....
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 16 Nov 2015, 04:42
Option E only states "Quantity" and not "Quality". The company can keep the Quantity intact but lose out on quality and hence competition.
Any clue?
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 09 Feb 2017, 06:48
hiteshdevnani1 wrote:
Option E only states "Quantity" and not "Quality". The company can keep the Quantity intact but lose out on quality and hence competition.
Any clue?


Yeah that is a possibility but among answer choices this one is the best. You can use negation technique to see which one strengtens the argument most .
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 12 Feb 2017, 17:24
rajarams wrote:
Can someone explain me why C is not a weakener?

if Top Line Technologies is headquartered in a city where the cost of living is lesser than that of the city in which Eureka industries is headquartered, and given that Employee wages constitute the same percentage for both the companies, it is clear that employees at Top Line Technologies are overpaid and hence a cut down of 10% on wages should not cause any effect in the quality or quantity.




Question asks you to find strengthener not weakner :-D
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 13 Feb 2017, 15:57
Abhishek009 wrote:
rajarams wrote:
Top Line Technologies and Eureka Industries distribute the same kind of rechargeable batteries to national electronic store chains. Employee wages comprise 38 percent of each company's total annual costs. In order to gain a competitive advantage over Eureka Industries, Top Line Technologies has proposed slashing employee wages by 10 percent.


Top line and Eureka produces same kind of batteries.

Employee cost Comprises of 38% , Other Operating Costs comprises of 62% of the total Cost.

Top Line proposes to reduce employee costs by 10% , to gain competitive advantage.


Hence we can safely assume that this reduced cost benefit will be passed on to the Customers and the firm can gain a competitive advantage by doing so....

Which of the following, if true, would most strengthen the argument above?

A. Top Line Technologies' rechargeable batteries have received more consistent consumer approval ratings than have Eureka Industries'. - Out of scope.

B. Top Line Technologies will have to reduce the number of rechargeable batteries it distributes to client stores. - Desired effect of gaining competitive advantage will not be achieved.

C. Eureka Industries is head quartered in a city that has a higher cost of living than does the city where Top Line Technologies is head quartered.- Out of Scope.

D. Top Line Technologies will begin distributing lower-quality rechargeable batteries. - Absolutely not , if the company compromises with Quality then it can't gain a competitive advantage.

E. Lowered employee wages have no effect on the quantity of rechargeable batteries that can be distributed to the client stores. - Definitely the company is not compromising on Quality as well as offering Cheaper Product , certainly this will lead to the desired effect....


I don't understand how ans choice E strengthens the argument. The conclusion here is "In order to gain a competitive advantage over Eureka Industries, Top Line Technologies has proposed slashing employee wages by 10 percent." If the conclusion that I have identified is correct, the answer choice E weakens the argument. Lowering the employee wages have no effect on quantity, if it is true how Top Line Technologies can have competitive advantage over Eureka?
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Re: Top Line Technologies and Eureka Industries distribute the  [#permalink]

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New post 22 Dec 2018, 22:21
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Re: Top Line Technologies and Eureka Industries distribute the &nbs [#permalink] 22 Dec 2018, 22:21
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