GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 20 Jun 2018, 09:50

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

United Lumber will use trees from its forests for two products.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
2 KUDOS received
MBA Section Director
User avatar
V
Joined: 19 Mar 2012
Posts: 5180
Location: India
GMAT 1: 760 Q50 V42
GPA: 3.8
WE: Marketing (Non-Profit and Government)
United Lumber will use trees from its forests for two products. [#permalink]

Show Tags

New post 25 Jan 2015, 22:28
2
1
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

97% (01:29) correct 3% (03:31) wrong based on 346 sessions

HideShow timer Statistics

United Lumber will use trees from its forests for two products. The tree trunks will be used for lumber and the branches converted into wood chips to make fiberboard. The cost of this conversion would be the same whether done at the logging site, where the trees are debranched, or at United's factory. However, wood chips occupy less than half the volume of the branches from which they are made. The information given, if accurate, most strongly supports which of the following?

A. Converting the branches into wood chips at the logging site would require transporting a fully assembled woodchipping machine to and from the site.

B. It would be more economical to debranch the trees at the factory where the fiberboard is manufactured.

C. The debranching of trees and the conversion of the branches into chips are the only stages in the processing of branches that it would be in United's economic advantage to perform at the logging site.

D. Transportation costs from the logging site to the factory that are determined by volume of cargo would be lower if the conversion into chips is done at the logging site rather than at the factory.

E. In the wood-processing industry, branches are used only for the production of wood chips for fiberboard.

D. The key here is the last sentence. If only half of the volume of the branches can be turned into wood chips, that's a lot of extra material to deal with.

D says that volume-based cargo costs would be lower if you process the branches at the site. If you process on-site, you're only sending the material to be used, which saves you half of the volume. If you send entire branches, you're paying to ship the excess material that isn't used for wood chips.

A--We have no information about the machinery requirements for wood chip conversion.
B--We have no information about the cost of debranching at the factory or at the site.
C--We don't know if there are other stages that could be economically advantageous.
E--We can't extrapolate from United Lumber to the entire wood-processing industry; we can't draw a universal conclusion from particular premises.

_________________

Have an MBA application Question? ASK ME ANYTHING!

My Stuff: Four Years to 760 | MBA Trends for Indian Applicants

My GMAT Resources
V30-V40: How to do it! | GMATPrep SC | GMATPrep CR | GMATPrep RC | Critical Reasoning Megathread | CR: Numbers and Statistics | CR: Weaken | CR: Strengthen | CR: Assumption | SC: Modifier | SC: Meaning | SC: SV Agreement | RC: Primary Purpose | PS/DS: Numbers and Inequalities | PS/DS: Combinatorics and Coordinates

My MBA Resources
Everything about the MBA Application | Over-Represented MBA woes | Fit Vs Rankings | Low GPA: What you can do | Letter of Recommendation: The Guide | Indian B Schools accepting GMAT score | Why MBA?

My Reviews
Veritas Prep Live Online

Manager
Manager
avatar
Joined: 27 Oct 2013
Posts: 237
Location: India
Concentration: General Management, Technology
GMAT Date: 03-02-2015
GPA: 3.88
Re: United Lumber will use trees from its forests for two products. [#permalink]

Show Tags

New post 25 Jan 2015, 23:34
Here we go---

According to me, Option D is correct.

Reasoning :

"wood chips occupy less than half the volume of the branches from which they are made."

option D: Transportation costs from the logging site to the factory that are determined by volume of cargo would be lower if the conversion into chips is done at the logging site rather than at the factory.

Self-explanatory. :)
BSchool Forum Moderator
avatar
P
Joined: 17 Jun 2016
Posts: 525
Location: India
GMAT 1: 720 Q49 V39
GMAT 2: 710 Q50 V37
GPA: 3.65
WE: Engineering (Energy and Utilities)
GMAT ToolKit User Premium Member Reviews Badge
Re: United Lumber will use trees from its forests for two products. [#permalink]

Show Tags

New post 03 May 2017, 20:47
Is this really a 700 level question ...
pretty straight forward for a 700 question
_________________

Compilation of Blogs by Mike Mcgarry - Magoosh

Re: United Lumber will use trees from its forests for two products.   [#permalink] 03 May 2017, 20:47
Display posts from previous: Sort by

United Lumber will use trees from its forests for two products.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.