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Trainton Builders are in the business of building homes

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Manager
Joined: 22 Aug 2016
Posts: 81
Location: India
Concentration: Operations, Finance
GMAT 1: 650 Q49 V29
GMAT 2: 710 Q49 V37
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Updated on: 10 Jul 2017, 01:16
2
00:00

Difficulty:

25% (medium)

Question Stats:

84% (01:09) correct 16% (01:09) wrong based on 61 sessions

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Trainton Builders are in the business of building homes in many southern towns including towns of Frentonsburg and Greensburg. The cost of purchasing similar homes from Trainton in Frentonsburg and Greensburg is almost the same. But land in Frentonsburg is extremely cheap compared to that in Greensburg. Therefore, the news article should be accurate in claiming that the Trainton Builders are getting a comparatively higher profit/house by selling homes in Frentonsburg.

Which of the following is most pertinent to evaluate the accuracy of the claim made in the article?

(A)The number of upgrades in an average home in Frentonsburg vs Greensburg .
(B)The number of homes Trainton plans to build in Frentonsburg with the number of homes it plans to build in Greensburg .
(C)The quality of the builders competing with Trainton Builders in Frentonsburg and in Greensburg .
(D)The difference in land price between Frentonsburg and Greensburg .
(E)The difference in cost of building construction in Greensburg compared to the cost of building construction in Frentonsburg

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Originally posted by sarathgopinath on 10 Jul 2017, 01:13.
Last edited by abhimahna on 10 Jul 2017, 01:16, edited 1 time in total.
Edited the question
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10 Jul 2017, 01:49
Cost price of home at Frentonsburg = Cost price of home at Greensburg

Cost of land in Frentonsburg < Cost of land in Greensburg.

Therefore, more profit in Frentonsburg.

Pre Thinking: To evaluate we can say what if homes at Frentonsburg have better construction material.

(A)The number of upgrades in an average home in Frentonsburg vs Greensburg . --> Upgrades are OFS. We are currently bothered about selling houses at two places.

(B)The number of homes Trainton plans to build in Frentonsburg with the number of homes it plans to build in Greensburg . --> Again, Irrelevant. The profit could still be more at Frentonsburg.

(C)The quality of the builders competing with Trainton Builders in Frentonsburg and in Greensburg . --> Other builders are OFS.

(D)The difference in land price between Frentonsburg and Greensburg .--> We already know that the price at Frentonsburg is less. Then how does the difference matter?

(E)The difference in cost of building construction in Greensburg compared to the cost of building construction in Frentonsburg --> Here we go. It means may be houses at Frentonsburg have better/costly material used. This weakens the argument.
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10 Jul 2017, 03:16
E

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Senior Manager
Joined: 09 Feb 2015
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10 Jul 2017, 06:13
Does anyone else think that E has really bad grammar?

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Re: Trainton Builders are in the business of building homes   [#permalink] 10 Jul 2017, 06:13
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