While manufacturing tasks at Foldaco are performed by human workers, at Boksco they are all done by programmed robots. Because of this, fewer workers are needed at Boksco while the output levels of the company match those of Foldaco. Clearly, Boksco's operational expenses are lower than those of Foldaco.
The answer to which of the following would be most useful in evaluating the argument?The argument concludes that Boksco’s operating expenses are lower just because it uses robots and therefore needs fewer workers. The gap is clear:
fewer workers do not automatically mean lower total operating costs. To evaluate the argument, we need the most useful information about whether Boksco’s labor cost advantage really translates into lower operating expenses overall.
(A) Do the robots used by Boksco require maintenance for them to achieve optimum output levels?
This is relevant, but not the most useful. Even if the answer is yes, we still would not know whether the maintenance cost is small or large, or whether it outweighs the savings from using fewer workers.
(B) Do the workers at Foldaco undergo specialized training before they are allowed to perform their tasks?
This is less useful. Training may affect costs, but the conclusion depends much more directly on the comparison between the two companies’ actual ongoing operating expenses.
(C) Are retail prices for products manufactured by Boksco much higher than those manufactured by Foldaco?
This is irrelevant. Retail price concerns revenue, not operating expenses.
(D) How long ago did Boksco complete the process of integrating the robots into its manufacturing system?
This is not very useful. The conclusion is about current operating expenses, not about when the robots were introduced.
(E) Is the sum of the wages of the workers at Boksco higher or lower than that of the workers at Foldaco?
This is the best answer.
The argument relies on the idea that needing fewer workers lowers operating expenses, so total wage cost is the most directly useful thing to compare. If Boksco’s total wages are not lower, the conclusion is weakened; if they are lower, the conclusion is strengthened.
Answer: (E)