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# TrueSave is a mail-order company that ships electronic products from i

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Manager
Joined: 14 Jun 2007
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Location: Vienna, Austria
TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 06:57
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Question Stats:

79% (01:50) correct 21% (01:11) wrong based on 318 sessions

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TrueSave is a mail-order company that ships electronic products from its warehouses to customers worldwide. The company’s shipping manager is proposing that customer orders be packed with newer, more expensive packing materials that virtually eliminate damage during shipping. The manager argues that overall costs would essentially remain unaffected, since the extra cost of the new packing materials roughly equals the current cost of replacing products returned by customers because they arrived in damaged condition.

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

(A) Whether the products shipped by TrueSave are more vulnerable to incurring damage during shipping than are typical electronic products

(B) Whether electronic products are damaged more frequently in transit than are most other products shipped by mail-order companies

(C) Whether a sizable proportion of returned items are returned because of damage already present when those items were packed for shipping

(D) Whether there are cases in which customers blame themselves for product damage that, though present on arrival of the product, is not discovered until later

(E) Whether TrueSave continually monitors the performance of the shipping companies it uses to ship products to its customer
[Reveal] Spoiler: OA

Last edited by hazelnut on 03 Jun 2017, 22:02, edited 2 times in total.
Senior Manager
Joined: 21 Apr 2008
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Schools: Kellogg, MIT, Michigan, Berkeley, Marshall, Mellon
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 09:59
Hi guys,

I'd say C

OA?

Cheers
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 11:10
D.

If customers do not return damaged goods, manager's proposal fails.
VP
Joined: 05 Jul 2008
Posts: 1408
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 11:39
C for me as well.

If a lot of products have damage before shipping, manager's proposal will cost more.
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Joined: 28 Oct 2008
Posts: 49
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 12:43
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TrueSave is a mail-order company that ships electronic products from its warehouses to
customers worldwide. The company’s shipping manager is proposing that customer
orders be packed with newer, more expensive packing materials that virtually eliminate
damage during shipping. The manager argues that overall costs would essentially remain
unaffected, since the extra cost of the new packing materials roughly equals the current
cost of replacing products returned by customers because they arrived in damaged
condition.

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

The shipping manager's assumption is that the cause of electronic damage comes only from shipping. As a result, he proposes to use more expensive material. Had the damage come from a worker mishandling the electronics, the more expensive packing material does not solve the problem.

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products
Eliminate: Out of scope. "Other electronic products".
B. Whether electronic products are damaged more frequently in transit than are most
other products shipped by mail-order companies
Eliminate: Out of scope. "Other mail order companies".
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping
My choice. If the items were already defective before delivery, there is another problem. Apply the YES/NO test. YES, the returned items are damaged prior to shipment. This weakens the argument. NO - the items were not damaged. The argument holds and the culprit is Fedex.
D. Whether there are cases in which customers blame themselves for product
damage that, though present on arrival of the product, is not discovered until later
Eliminate: Out of scope. We're not talking about what customers do. We're talking about said electronic company.
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers
Eliminate: This statement doesn't do anything to the argument. If the company doesn't monitor the quality assurance department (defects), continuously monitoring the shippers won't fix an existing problem.
Manager
Joined: 12 Jun 2008
Posts: 79
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 14:37
From my point of view, C
Manager
Joined: 02 Aug 2006
Posts: 114
Location: Mumbai
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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16 Nov 2008, 19:30
Should be D. It is necessary to evaluate how many products were actually damaged. Whether customers making false claims? If yes then no need of damage proof packaging
Manager
Joined: 23 Jul 2008
Posts: 194
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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17 Nov 2008, 11:26
I would say C. plz share the OA as well.
Director
Joined: 30 Jun 2007
Posts: 786
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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17 Nov 2008, 11:48
A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products [Hold]
B. Whether electronic products are damaged more frequently in transit than are most
other products shipped by mail-order companies [other products are not discussed as part of the argument. Moreover, if the products are not damaged at the rate that Manager mentions, then this choice has less relevance]
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping [This may have effect on the Manager’s decision, but not once the decision has been implemented]
D. Whether there are cases in which customers blame themselves for product
damage that, though present on arrival of the product, is not discovered until later [Irrelevant]
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers [Monitoring has no effect on the argument]

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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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17 Nov 2008, 14:29
Si.
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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17 Nov 2008, 14:39
domleon wrote:
The manager argues that overall costs would essentially remain
unaffected, since the extra cost of the new packing materials roughly equals the current
cost of replacing products returned by customers because they arrived in damaged
condition.

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

C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping

The manager is arguing that the cost of packing materials will go UP, but the cost of replacing products will go DOWN (offsetting each other). If the items are broken before they leave the warehouse, there isn't a packing material on the planet that's going to un-break them

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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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18 Nov 2008, 00:23
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The ans should be C definitely. The manager's proposal is effective only when the items are damaged during the shipping. but if the items are already broken, the we are only increasing the cost price by packing the damaged items with an expensive material. The items have to returned in any case.
Intern
Joined: 28 Feb 2009
Posts: 2
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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28 Feb 2009, 05:58
the assumption of the argument is: "good items are packed for shipping, and they get damaged after shipping, that is during transit".
A) A does not validate assumption - items may be vulnerable but what if shipping agency takes extra care while handling it.
B) does not substantiate assumption, answers only 50% of truth - more electronic products may get damaged in transit, but we want to know whether they are damaged before packing them for shipping, and what is the propotion of the goods that is damaged in transit and the goods that is already damaged before packaging it?
C) substantiates assumption in correctly in proper form
D/E) irrelevant
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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15 Apr 2011, 10:04
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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19 Jan 2012, 17:15
1
KUDOS
I am also for C.

That manager wanted to reduce costs by investing on advanced packing technology. So, here the assumption is - items were in good condition during package but got damaged during transit. if items were already in damaged condition at the time of packing, no matter how much care the company takes for transport, customers are going to return them which ultimately increases the cost.
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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22 Apr 2012, 03:29
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TrueSave is a mail-order company that ships electronic products from its warehouses to customers worldwide. The company’s shipping manager is proposing that customer orders be packed with newer, more expensive packing materials that virtually eliminate damage during shipping. The manager argues that overall costs would essentially remain unaffected, since the extra cost of the new packing materials roughly equals the current cost of replacing products returned by customers because they arrived in damaged condition.

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

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products.
B. Whether electronic products are damaged more frequently in transit than are
most other products shipped by mail-order companies.
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping.
D. Whether there are cases where customers blame themselves for product
damage that, though present on arrival, isn’t discovered until later.
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers

Can someone explain this one?
Manager
Joined: 21 Feb 2012
Posts: 114
Location: India
Concentration: Finance, General Management
GMAT 1: 600 Q49 V23
GPA: 3.8
WE: Information Technology (Computer Software)
Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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22 Apr 2012, 03:38
piyushksharma wrote:
TrueSave is a mail-order company that ships electronic products from its warehouses to customers worldwide. The company’s shipping manager is proposing that customer orders be packed with newer, more expensive packing materials that virtually eliminate damage during shipping. The manager argues that overall costs would essentially remain unaffected, since the extra cost of the new packing materials roughly equals the current cost of replacing products returned by customers because they arrived in damaged condition.

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

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products.
B. Whether electronic products are damaged more frequently in transit than are
most other products shipped by mail-order companies.
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping.
D. Whether there are cases where customers blame themselves for product
damage that, though present on arrival, isn’t discovered until later.
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers

Can someone explain this one?

If the items while packing were damaged, and then those items were shipped, still TrueSave has to pay for the damaged item it was going to send to the customers. So it is important to determine that the products/items before packing were damaged or not, if they would have been damaged ones then there is no need to introduce the new packaging material, as the new packaging material would not help in rectifying the damage already caused before packing of the product.
According to me this was the what i got. If someone could tell me if it is correct interpretation of the question.
Manager
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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23 Apr 2012, 06:27
piyushksharma wrote:
piyushksharma wrote:
TrueSave is a mail-order company that ships electronic products from its warehouses to customers worldwide. The company’s shipping manager is proposing that customer orders be packed with newer, more expensive packing materials that virtually eliminate damage during shipping. The manager argues that overall costs would essentially remain unaffected, since the extra cost of the new packing materials roughly equals the current cost of replacing products returned by customers because they arrived in damaged condition.

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

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products.
B. Whether electronic products are damaged more frequently in transit than are
most other products shipped by mail-order companies.
C. Whether a sizable proportion of returned items are returned because of damage
already present when those items were packed for shipping.
D. Whether there are cases where customers blame themselves for product
damage that, though present on arrival, isn’t discovered until later.
E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers

Can someone explain this one?

If the items while packing were damaged, and then those items were shipped, still TrueSave has to pay for the damaged item it was going to send to the customers. So it is important to determine that the products/items before packing were damaged or not, if they would have been damaged ones then there is no need to introduce the new packaging material, as the new packaging material would not help in rectifying the damage already caused before packing of the product.
According to me this was the what i got. If someone could tell me if it is correct interpretation of the question.

You are correct.
Argument : Cost of extra packaging material = cost of replacing damaged product due to transit.
If the products are damaged before transit, introducing new packaging material is more costly than the old way of packaging. => C
Hope it helps.
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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23 Apr 2012, 11:22
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Expert's post
The manager's plan is only viable if it saves the corporation money. The manager believes that better packaging will lead to less broken merchandise and thus less money on replacement. To determine if this plan will work, we have to determine whether there isn't a possibility that, if true, could foil his plan.

A. Whether the products shipped by TrueSave are more vulnerable to incurring
damage during shipping than are typical electronic products.

The focus is on whether the packaging will prevent damaged products and thus replacements. Even if TrueSave packages are more vulnerable to incurring damage, better packaging could prevent damage.

B. Whether electronic products are damaged more frequently in transit than are
most other products shipped by mail-order companies.

We care only about electronic products, and not other products.

C. Whether a sizable proportion of returned items are returned because of damage

If there was already damage, then no amount of packaging can prevent damage. Think of it this way, even if you pack a broken DVD player in an iron safe (hardly a cost-effective shipping method ), it will still arrive damaged, and the recipient will very likely ask for a replacement. So, in order to determine how effective the manager's plan will be, we have to determine what perfect of goods were already damaged before packing.

D. Whether there are cases where customers blame themselves for product
damage that, though present on arrival, isn’t discovered until later.

If customer's blame themselves, they are unlikely to return the product.

E. Whether TrueSave continually monitors the performance of the shipping
companies it uses to ship products to its customers.

If a customer asks for a replacement, TrueSave will have to provide it, and thus lose money. Whether the company is monitoring the shipping company is moot if the packaging is flimsy.
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Re: TrueSave is a mail-order company that ships electronic products from i [#permalink]

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21 Nov 2013, 12:00
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Re: TrueSave is a mail-order company that ships electronic products from i   [#permalink] 21 Nov 2013, 12:00

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