Official Explanation:Phil, a salesman, needs to decide which of two job offers to take. Company A pays a weekly salary plus a commission on all his sales. Company B will only pay a commission on his sales, though the rate of commission is considerably higher than it is at Company A. Phil eventually decides to take Company A, believing that by doing so, he will be better off financially.
Which of the following best strengthens the decision that Phil has made regarding his choice of job offers? (A) Company B has been in business for half the number of years that Company A has been in business.(B) The product that Phil would be selling if he worked for Company B has a higher profit margin than the product Phil would be selling if he worked for Company A.(C) Company B sells nearly all of its product during the winter, while Company A sells its product consistently throughout the year.(D) Phil has become acquainted with many of Company B’s customers through his previous job.(E) Company A is now offering a health insurance policy to all of its salespeople that is more generous than what the company offered in previous years.Question Type: Strengthen
Boil It Down: Company A offered weekly salary & commission. Company B offered only commission, but a higher commission than Company A. Phil chose Company A.
Goal: Find the option that best strengthens the argument for choosing Company A over Company B. Analysis:This question asks you to strengthen the conclusion.
Conclusion: It is a good idea, financially, for Phil to join Company A.
Evidence: Job A pays a salary + commission, unlike Job B, which only pays commissions, though Job B has higher commissions.
To strengthen the conclusion, we need information that shows that the salary + commission job will be better for Phil. Choice C does this by showing that working for B will provide Phil with a steadier income, and this can be viewed by Phil as “better” financially.
(A) Company B has been in business for half the number of years that Company A has been in business.
This doesn’t directly impact Phil’s financial situation. We can’t take this as meaning that the company is more successful or that in some other way it is better for Phil. We have to stick to only what the choice states.(B) The product that Phil would be selling if he worked for Company B has a higher profit margin than the product Phil would be selling if he worked for Company A.
We are told that Phil is paid a commission on the selling price, not on the profit, so we can’t say how this would affect Phil financially.(C) Company B sells nearly all of its product during the winter, while Company A sells its product consistently throughout the year.
This is the correct choice. It is reasonable for Phil to prefer a steady income rather than one that only generates an income for a part of the year. It’s a good reason why choosing Job A is the better offer from a financial standpoint.(D) Phil has become acquainted with many of Company B’s customers through his previous job.
If anything, this would weaken the conclusion to choose Job A. If Phil knows customers of Job B, working there could help him financially.(E) Company A is now offering a health insurance policy to all of its salespeople that is more generous than what the company offered in previous years.
The comparison is irrelevant. We need a comparison between the two companies. It could be that Job A has improved its health insurance, but Job B still has a much better policy.Don’t study for the GMAT. Train for it.