The manager of BigShoppe, a company that lets customers purchase fresh

Question

The manager of BigShoppe, a company that lets customers purchase fresh fruits and vegetables online, suggests that customer orders be packed in extra-strong cartons to eliminate damage during transportation. Though these cartons are more expensive, overall costs would remain unaffected since the additional packaging cost is almost equal to the cost of refunding customers who received damaged fruits and vegetables.

Which of the following would it be most important to ascertain in determining whether implementing the manager’s proposal would have the argued-for effect on costs?

(A) Whether BigShoppe dispatchers habitually send out damaged fruits and vegetables to customers
(B) Whether the transportation companies used by BigShoppe will handle the new cartons carefully
(C) Whether the percentage of refunds that BigShoppe makes is higher than those seen by other online shopping companies
(D) Whether some customers are themselves responsible for the damage caused to the produce
(E) Whether fruits and vegetables are more vulnerable to incurring damage during shipping than are other fragile products.

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AVMachine · Answer

(A) Whether BigShoppe dispatchers habitually send out damaged fruits and vegetables to customers
Analysis: If yes then using stronger cartons wouldn't help otherwise cartons would be helpful. Required.

(B) Whether the transportation companies used by BigShoppe will handle the new cartons carefully
Analysis: New cartons are meant to be stronger. Not required.

(C) Whether the percentage of refunds that BigShoppe makes is higher than those seen by other online shopping companies
Analysis: Comparison with others is not required here.

(D) Whether some customers are themselves responsible for the damage caused to the produce
Analysis: Some customers don't represent how much, maybe they are too small in nos. Not Required.

(E) Whether fruits and vegetables are more vulnerable to incurring damage during shipping than are other fragile products.
 Analysis: Out of context.

Dereno · Answer

The manager of Bigshoppe - allows purchase of fresh fruits and vegetables ONLINE. And the package is delivered to the customer after online request is being received. The manager suggests the customer orders be packed in extra strong cartons to avoid damage during transportation.

Moreover, additional packaging cost is approx to the cost of refund.

The question is Determine if the proposal will have the argued-for effect on costs (i.e., costs remain unaffected).

SOLUTION:

(A) Whether BigShoppe dispatchers habitually send out damaged fruits and vegetables to customers

If they habitually send damaged fruits, the extra strong carton has no effect on the problem, eventually leading to refunds.

(B) Whether the transportation companies used by BigShoppe will handle the new cartons carefully

This is an interesting option. If the transportation companies handle packages professionally. Then there will be a cost offset. Reducing refund rates to a greater extent. Hence,  Option B. 
 
 (C) Whether the percentage of refunds that BigShoppe makes is higher than those seen by other online shopping companies

When a problem occurs in a company, solution has to be made within the problem site. Comparing doesn’t resolve the issue.

(D) Whether some customers are themselves responsible for the damage caused to the produce

wilful damage rates by customer can be lower. And the carton being heavy has a lower possibility for damage, minimising refund rates.

(E) Whether fruits and vegetables are more vulnerable to incurring damage during shipping than are other fragile products.

Thats why extra strong cartons are provided. Out of scope

TC97 · Answer

The relationship between use of new carton & reducing damage is what to evaluate.

(A) Whether BigShoppe dispatchers habitually send out damaged fruits and vegetables to customers
Irrelevant, because the argument focus on transportation, not dispatcher.

(B) Whether the transportation companies used by BigShoppe will handle the new cartons carefully
  Correct. If the transportation do not handle new cartons carefully, then customers would still receive damaged products and ask for refunds.

(C) Whether the percentage of refunds that BigShoppe makes is higher than those seen by other online shopping companies
Irrelevant. The goal is to reduce refund cost rather than competing them to other companies.

(D) Whether some customers are themselves responsible for the damage caused to the produce
Not quite relevant. Although customers themselves could be responsible for product, the argument specifically attribute the damage to "transportation". So, eliminated.

(E) Whether fruits and vegetables are more vulnerable to incurring damage during shipping than are other fragile products.
Irrelevant. The argument does not dive into which fruits and vegetables are more vulnerable than others.

glagad · Answer

OA is A.

However, my contention for A is that even if BigShoppee habitually sends out refunds for damaged products, we are not sure if they refund 100% of the customers whose products are damaged.

If that doesn't hold true, the additional packaging cost won't be (almost) equal to the refunds processed.

The reason I had chosen D is that, it states another reason of damage of the product, due to which the refund would still need to be processed even if the packaging gets better and hence the cost won't be (almost) equal.

As I write my reasoning for D, I understand that its weak, but I would still love to hear thoughts on A.

Can someone please help here?

Thanks

Bunuel · Answer

Official Explanation:

Official Answer: A

The argument is that using superior packaging would be beneficial and will offset the cost that BigShoppe incurs through refunds. The assumption is that using superior packaging would essentially ensure that the fruits and vegetables BigShoppe sends to customers will not have to be replaced. Option A poses the right evaluation, in that if it is found that BigShoppe is sending already damaged fruits and vegetables to customers, then the damage isn’t caused during transportation and therefore, using better packing material would be pointless. Thus, A is the correct answer.

(A) This option helps us evaluate the argument as mentioned above.

(B) We are worried about the superior packaging. We don’t need to know about how they will be handled.

(C) We don’t need to know about the percentage of refunds.

(D) We don’t need to know who is responsible.

(E) We don’t need to know about other products.

The manager of BigShoppe, a company that lets customers purchase fresh

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The manager of BigShoppe, a company that lets customers purchase fresh

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