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30 Apr 2024, 12:33
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Difficulty:
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Question Stats:
85% (02:01) correct
15%
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wrong
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A company plans to expand into marine salvage, concentrating on a stretch of Country Y coastal waters that was a busy seventeenth-century shipping lane, which is thought to have several shipwrecks containing coins and other valuable objects. Country Y's government is willing to issue permits for the salvage jobs, and estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects. Moreover, the work has the support of archaeologists and thus will not be slowed by lawsuits.
Which of the following would, if true, most weaken the company's plans to profit from shipwreck salvage?
Which of the following would, if true, most weaken the company's plans to profit from shipwreck salvage?
- (A) Estimates of Country Y's coastal shipping indicate that, by volume, coins were only a small percentage of seventeenth-century cargoes.
(B) Deep-sea salvage operations can cost up to $80,000 per day.
(C) The company's experience in maritime salvage comes entirely from its recently acquired ocean-mining subsidiary.
(D) The company's remote-operated robotic research vehicles cost $50,000 each.
(E) Country Y plans a 50 percent tax on gross sales of antique objects found within its territory.
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30 Apr 2024, 13:04
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A company plans to expand into marine salvage, concentrating on a stretch of Country Y coastal waters that was a busy seventeenth-century shipping lane, which is thought to have several shipwrecks containing coins and other valuable objects. Country Y's government is willing to issue permits for the salvage jobs, and estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects. Moreover, the work has the support of archaeologists and thus will not be slowed by lawsuits.
Which of the following would, if true, most weaken the company's plans to profit from shipwreck salvage?
The question asks which choice would weaken the company's plans to profit from shipwreck salvage. So, the implied conclusion we're working with is that the company will profit from shipwreck salvage, and the support for the conclusion is the statements in the passage about the shipwrecks containing coins and other valuable objects, permits, salvage costs, and support of archeologists.
The correct answer will cast doubt on the conclusion that the company will profit from shipwreck salvage.
(A) Estimates of Country Y's coastal shipping indicate that, by volume, coins were only a small percentage of seventeenth-century cargoes.
The passage indicates that the shipwrecks from which the company plans to salvage items contain "coins and other valuable objects." So, even if coins were a small percentage of the cargoes, there are other valuable objects to salvage.
Also, even if coins are not a large percentage of the cargoes, there could still be large quantities of coins.
Finally, as the passage says, "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, according to the estimates the company should profit from recovering and selling what the shipwrecks contain regardless of what percentage is coins.
Eliminate.
(B) Deep-sea salvage operations can cost up to $80,000 per day.
This choice indicates that the operations will be costly, but it remains the case that, as the passage says, "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects."
So, even if the operations will be costly, they should still be profitable.
Eliminate.
(C) The company's experience in maritime salvage comes entirely from its recently acquired ocean-mining subsidiary.
This choice might sound important and may seem to weaken the case for the conclusion.
At the same time, the truth is that, regardless of where the experience comes from, the company has experience. So, the operation should work.
Eliminate.
(D) The company's remote-operated robotic research vehicles cost $50,000 each.
This choice indicates that the equipment the company plans to use is expensive. So, it could seem to indicate that marine salvage won't be profitable.
However, we know from the passage that "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, apparently, even thought the equipment is expensive, the operation should be profitable.
Eliminate.
(E) Country Y plans a 50 percent tax on gross sales of antique objects found within its territory.
This choice is interesting.
After all, the passage says that "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, 40 percent of the sales will likely be taken by salvage costs.
Now, this choice indicates that 50 percent of sales will go to taxes.
40 percent plus 50 percent is 90 percent of sales already taken by salvage costs and taxes. So, given what this choice says, the company is down to a 100 - 90 = 10-percent margin, and there could be other costs as well.
This choice is a little different from any other Weaken correct answer that I've seen, and also, if the company could maintain a 10-percent margin, or something close to a 10-percent margin, the salvage operations would be profitable. So, this choice doesn't prove that marine salvage won't be profitable for the company, and it doesn't have the type of cool logical way of casting doubt on the conclusion that we typically see in a GMAT Weaken question. So, I personally don't find this choice easy to choose.
At the same time, none of the other choices work, and the fact that, given what this choice says, the company is working with a 10 percent margin before sales costs or other potential costs indicates that there's a good chance that marine salvage won't be profitable for the company. So, this choice certainly works and is the best answer.
Keep.
Correct answer: E
Which of the following would, if true, most weaken the company's plans to profit from shipwreck salvage?
The question asks which choice would weaken the company's plans to profit from shipwreck salvage. So, the implied conclusion we're working with is that the company will profit from shipwreck salvage, and the support for the conclusion is the statements in the passage about the shipwrecks containing coins and other valuable objects, permits, salvage costs, and support of archeologists.
The correct answer will cast doubt on the conclusion that the company will profit from shipwreck salvage.
(A) Estimates of Country Y's coastal shipping indicate that, by volume, coins were only a small percentage of seventeenth-century cargoes.
The passage indicates that the shipwrecks from which the company plans to salvage items contain "coins and other valuable objects." So, even if coins were a small percentage of the cargoes, there are other valuable objects to salvage.
Also, even if coins are not a large percentage of the cargoes, there could still be large quantities of coins.
Finally, as the passage says, "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, according to the estimates the company should profit from recovering and selling what the shipwrecks contain regardless of what percentage is coins.
Eliminate.
(B) Deep-sea salvage operations can cost up to $80,000 per day.
This choice indicates that the operations will be costly, but it remains the case that, as the passage says, "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects."
So, even if the operations will be costly, they should still be profitable.
Eliminate.
(C) The company's experience in maritime salvage comes entirely from its recently acquired ocean-mining subsidiary.
This choice might sound important and may seem to weaken the case for the conclusion.
At the same time, the truth is that, regardless of where the experience comes from, the company has experience. So, the operation should work.
Eliminate.
(D) The company's remote-operated robotic research vehicles cost $50,000 each.
This choice indicates that the equipment the company plans to use is expensive. So, it could seem to indicate that marine salvage won't be profitable.
However, we know from the passage that "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, apparently, even thought the equipment is expensive, the operation should be profitable.
Eliminate.
(E) Country Y plans a 50 percent tax on gross sales of antique objects found within its territory.
This choice is interesting.
After all, the passage says that "estimates put salvage costs at only 40 percent of the projected gross sales of the recovered objects." So, 40 percent of the sales will likely be taken by salvage costs.
Now, this choice indicates that 50 percent of sales will go to taxes.
40 percent plus 50 percent is 90 percent of sales already taken by salvage costs and taxes. So, given what this choice says, the company is down to a 100 - 90 = 10-percent margin, and there could be other costs as well.
This choice is a little different from any other Weaken correct answer that I've seen, and also, if the company could maintain a 10-percent margin, or something close to a 10-percent margin, the salvage operations would be profitable. So, this choice doesn't prove that marine salvage won't be profitable for the company, and it doesn't have the type of cool logical way of casting doubt on the conclusion that we typically see in a GMAT Weaken question. So, I personally don't find this choice easy to choose.
At the same time, none of the other choices work, and the fact that, given what this choice says, the company is working with a 10 percent margin before sales costs or other potential costs indicates that there's a good chance that marine salvage won't be profitable for the company. So, this choice certainly works and is the best answer.
Keep.
Correct answer: E
General Discussion
21 Mar 2025, 05:02
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Hi MartyMurray I have some disagreement over choice C. If the company's experience in maritime salvage comes entirely from its recently acquired ocean-mining subsidiary then it could go in both directions as the new company could be either experienced or inexperienced, or the integration does not go smoothly leading to functional sub-optimal performance.
In this case, if due to the above reasons the company is not able to salvage items, it will not be able to make a profit, and hence our argument is weakened.
In this case, if due to the above reasons the company is not able to salvage items, it will not be able to make a profit, and hence our argument is weakened.
