The cost of producing nuclear submarines in Atlantis is 10 percent

Question

The cost of producing nuclear submarines in Atlantis is 10 percent less than the cost of producing nuclear submarines in Utopia. Even after transportation fees and tariff charges are added, it is still cheaper for a military establishment to import nuclear submarines from Atlantis to Utopia than to produce nuclear submarines in Utopia.

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

(A) Labor costs in Atlantis are 10 percent below those in Utopia. 
(B) Importing nuclear submarines from Atlantis to Utopia will eliminate 10 percent of the manufacturing jobs in Utopia. 
(C) The tariff on a nuclear submarine imported from Atlantis to Utopia is less than 10 percent of the cost of manufacturing the nuclear submarine in Utopia. 
(D) The fee for transporting a nuclear submarine from Atlantis to Utopia is more than 10 percent of the cost of manufacturing the nuclear submarine in Atlantis. 
(E) It takes 10 percent less time to manufacture a nuclear submarine in Atlantis than it does in Utopia.

source - CrackVerbal

lethanhnhan1206 · Answer

It is (C) I believe. Since tariffs does not account for the great amount of the disparity between cost of production between 2 entities, C expesses it the clearest.

DavidTutorexamPAL · Answer

Let's break down our passage:
1. cost in Atlantis 10% less than in Utopia
2. cheaper to import from Atlantis than build in Utopia, even with added costs

We'll first try to infer a likely assertion directly from our data, a Precise approach.:
If the import is cheaper even with the added costs, than the added costs must be less than 10% of the production price in Utopia.
If this option appears in our answer choices, we're done! Otherwise, we'll need to examine each answer choice individually.

In fact, this is exactly answer choice (C)! No need to check the other options...

Abhishek009 · Answer

Definitely (C), similar OG Question to practice will be https://gmatclub.com/forum/the-cost-of- ... fl=similar

aragonn · Answer

Official Explanation:

Answer: C

(A) We are not concerned with labor costs.
(B) There is no information to support this option. 
(C) The fact is that the cost of producing nuclear submarines is 10% less in Atlantis than in Utopia, even with transportation and other costs included. The cost to import nuclear submarine to Utopia from Atlantis will still be cheaper. Therefore, the import related tariff is less than 10% of the cost of manufacturing in Utopia. This is expressed in option C, which is the correct answer. 
(D) This doesn’t relate to the reduction in the cost. 
(E) This option talks about time. We are concerned about the costs.

A_Nishith · Answer

Let's break down our passage:
1. cost in Atlantis 10% less than in Utopia
2. cheaper to import from Atlantis than build in Utopia, even with added costs

If the import is cheaper even with the added costs, than the added costs must be less than 10% of the production price in Utopia.
If this option appears in our answer choices, we're done! Otherwise, we'll need to examine each answer choice individually.

In fact, this is exactly answer choice (C)! No need to check the other options...

Answer: C

The cost of producing nuclear submarines in Atlantis is 10 percent

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GMAT Critical Reasoning (CR) Questions

The cost of producing nuclear submarines in Atlantis is 10 percent

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