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

 It is currently 16 Nov 2018, 23:36

### 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 November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### Free GMAT Strategy Webinar

November 17, 2018

November 17, 2018

07:00 AM PST

09:00 AM PST

Nov. 17, 7 AM PST. Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.
• ### GMATbuster's Weekly GMAT Quant Quiz # 9

November 17, 2018

November 17, 2018

09:00 AM PST

11:00 AM PST

Join the Quiz Saturday November 17th, 9 AM PST. The Quiz will last approximately 2 hours. Make sure you are on time or you will be at a disadvantage.

# Eton Company, an auto parts manufacturer, wants to extend

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

### Hide Tags

Verbal Forum Moderator
Status: Greatness begins beyond your comfort zone
Joined: 08 Dec 2013
Posts: 2114
Location: India
Concentration: General Management, Strategy
Schools: Kelley '20, ISB '19
GPA: 3.2
WE: Information Technology (Consulting)
Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

17 Jun 2017, 10:53
1
00:00

Difficulty:

55% (hard)

Question Stats:

67% (02:05) correct 33% (02:00) wrong based on 289 sessions

### HideShow timer Statistics

Eton Company, an auto parts manufacturer, wants to extend its network of suppliers to include Applia, a maker of a new type of ball bearing. Eton estimates that the new ball bearing will increase the operational efficiency of its steering unit by 30%. Therefore, executives of Eton believe that adding Applia to its list of suppliers will help improve Eton's profitability.

Which of the following would be most useful to investigate to determine whether the new relationship with Applia will contribute to Eton Company's steering unit?
A. Will the new cost to purchase the new ball bearing from Applia exceed the cost of the ball bearing currently used to manufacture Eton Company's steering unit?
B. Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?
C. Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?
D. Are Eton company executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?
E. Will the cost to purchase the new ball bearing offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?

_________________

When everything seems to be going against you, remember that the airplane takes off against the wind, not with it. - Henry Ford
The Moment You Think About Giving Up, Think Of The Reason Why You Held On So Long
+1 Kudos if you find this post helpful

Manager
Joined: 12 Nov 2016
Posts: 72
Re: Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

17 Jun 2017, 11:49
E it is...E tells us whether it will be profitable to get new ball bearings. If revenue is greater than cost - Yes, if revenue less than cost - No.

Eton Company, an auto parts manufacturer, wants to extend its network of suppliers to include Applia, a maker of a new type of ball bearing. Eton estimates that the new ball bearing will increase the operational efficiency of its steering unit by 30%. Therefore, executives of Eton believe that adding Applia to its list of suppliers will help improve Eton's profitability.

Which of the following would be most useful to investigate to determine whether the new relationship with Applia will contribute to Eton Company's steering unit?
A. Will the new cost to purchase the new ball bearing from Applia exceed the cost of the ball bearing currently used to manufacture Eton Company's steering unit?
B. Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?
C. Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?
D. Are Eton company executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?
E. Will the cost to purchase the new ball bearing offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?
Intern
Joined: 27 Jan 2017
Posts: 9
Re: Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

05 Sep 2017, 07:54
Chets25 wrote:
E it is...E tells us whether it will be profitable to get new ball bearings. If revenue is greater than cost - Yes, if revenue less than cost - No.

Eton Company, an auto parts manufacturer, wants to extend its network of suppliers to include Applia, a maker of a new type of ball bearing. Eton estimates that the new ball bearing will increase the operational efficiency of its steering unit by 30%. Therefore, executives of Eton believe that adding Applia to its list of suppliers will help improve Eton's profitability.

Which of the following would be most useful to investigate to determine whether the new relationship with Applia will contribute to Eton Company's steering unit?
A. Will the new cost to purchase the new ball bearing from Applia exceed the cost of the ball bearing currently used to manufacture Eton Company's steering unit?
B. Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?
C. Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?
D. Are Eton company executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?
E. Will the cost to purchase the new ball bearing offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?

can you please tell me what is wrong with A?
Manager
Joined: 05 Dec 2014
Posts: 203
Location: India
GMAT 1: 690 Q48 V36
GPA: 3.54
Re: Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

29 Oct 2017, 20:19
Skywalker18 wrote:
Eton Company, an auto parts manufacturer, wants to extend its network of suppliers to include Applia, a maker of a new type of ball bearing. Eton estimates that the new ball bearing will increase the operational efficiency of its steering unit by 30%. Therefore, executives of Eton believe that adding Applia to its list of suppliers will help improve Eton's profitability.

Which of the following would be most useful to investigate to determine whether the new relationship with Applia will contribute to Eton Company's steering unit?
A. Will the new cost to purchase the new ball bearing from Applia exceed the cost of the ball bearing currently used to manufacture Eton Company's steering unit?
B. Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?
C. Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?
D. Are Eton company executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?
E. Will the cost to purchase the new ball bearing offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?

Hi Skywalker18,
Both options A & E avoid the long terms benefits as purchasing the equipment is a one time cost.
Intern
Joined: 10 Dec 2015
Posts: 27
GMAT 1: 680 Q45 V38
Re: Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

22 Jan 2018, 09:35
A. Will the new cost to purchase the new ball bearing from Applia exceed the cost of the ball bearing currently used to manufacture Eton Company's steering unit?
-Trap Answer. New ball bearing might cost more, but the sale price might also exceed, leading to profit. No definite answer.
B. Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?
-Buyers might currently seek efficiency, but may or may not be willing to pay extra for it. This doesn't guarantee a profit. No definite answer.
C. Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?
-Irrelevant. They do not need to be aware.
D. Are Eton company executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?
-Irrelevant.
E. Will the cost to purchase the new ball bearing offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?
-Yes. If sale price is more than cost price, then profit will be earned.
_________________

-Please give me KUDOS, if my posts help you in anyway.
-Please PM me any doubts which you might have, and I will do my level best to help.

Intern
Joined: 05 Feb 2017
Posts: 39
Re: Eton Company, an auto parts manufacturer, wants to extend  [#permalink]

### Show Tags

22 Jan 2018, 10:05
E is a winner.Aptly explained above by Rahul.

Sent from my iPhone using GMAT Club Forum
Re: Eton Company, an auto parts manufacturer, wants to extend &nbs [#permalink] 22 Jan 2018, 10:05
Display posts from previous: Sort by

# Eton Company, an auto parts manufacturer, wants to extend

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

 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®.