All of the employees at the Marshalltown Packing Warehouse receive

Question

All of the employees at the Marshalltown Packing Warehouse receive a 3% bonus each Christmas. The company owner instituted the Christmas bonus at the company’s inception ten years earlier, and the company handbook includes a guarantee to new employees that they will receive the bonus annually. The company has recently hired a new financial officer whose review of the books indicates that the company’s budget might not allow for the Christmas bonus this year due to a decline in advertising revenues for the company. The financial officer sends out a memo to all employees, informing them that the company will be unable to provide the Christmas bonuses this year unless all employees contribute to an improvement in advertising revenues.

Consider the passage above carefully. If the information contained within it is true, which of the following must also be true?

(A) If advertising revenues are down, the company is not responsible for providing Christmas bonuses to its employees unless the employees are willing to help improve advertising revenues.

(B) By asking the employees to contribute to an improvement in advertising revenues, the company is essentially asking employees to contribute to their own bonuses.

(C) If the company has always been able to provide the Christmas bonus in the past, there is no reason it should be unable to do so in the present, so the financial officer must be falsifying the numbers.

(D) Unless employees contribute to the advertising revenues, the only other choice for the company will be to downsize and lay off employees.

(E) Because the company has guaranteed the Christmas bonuses in the employee handbook, the employees will likely go on strike if they do not receive the bonuses.

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ManifestDreamMBA · Answer

(A) If advertising revenues are down, the company is not responsible for providing Christmas bonuses to its employees unless the employees are willing to help improve advertising revenues.
 Doesn't seem like the case.The memo just mentions the current situation and urges employees to help with advertising rev to be able to get bonuses

(B) By asking the employees to contribute to an improvement in advertising revenues, the company is essentially asking employees to contribute to their own bonuses.
 Seems like the case

(C) If the company has always been able to provide the Christmas bonus in the past, there is no reason it should be unable to do so in the present, so the financial officer must be falsifying the numbers.
 This contradicts the information by CFO. Also, past trends doesn't mean company can give bonuses this year. May be the employees are more than before of the rev is not as high to meet the bonus required.

(D) Unless employees contribute to the advertising revenues, the only other choice for the company will be to downsize and lay off employees.
 We don't know how the company   will react. Also, the concerns are that budget won't allow for bonuses not salaries. Out

(E) Because the company has guaranteed the Christmas bonuses in the employee handbook, the employees will likely go on strike if they do not receive the bonuses.
 We don't know how employees will react. Out

bhargavhhhhhhhh · Answer

1. Given facts: 
 - All employees receive a 3% Christmas bonus annually. 
 - The bonus has been guaranteed in the company handbook. 
 - Due to a decline in advertising revenues, the company might not afford the bonus. 
 - The financial officer states that the bonus depends on employees helping improve advertising revenues.

2. Evaluating the options: 
 - (A) The company handbook guarantees the bonus, so the company is still responsible regardless of revenue issues. ❌ 
 - (B) The financial officer links the bonus to employees improving advertising revenues, meaning they are essentially being asked to generate their own bonuses. ✅ 
 - (C) No evidence suggests the financial officer is falsifying numbers. ❌ 
 - (D) The passage does not mention layoffs as the only alternative. ❌ 
 - (E) There is no mention of employees planning a strike. ❌

3. Answer: (B) By asking the employees to contribute to an improvement in advertising revenues, the company is essentially asking employees to contribute to their own bonuses.

Gmat750aspirant · Answer

Let's analyze the passage and evaluate which answer choice must be true based on the given information.

All employees are promised a 3% Christmas bonus annually as per the company handbook.

The company has always provided the bonus for the past ten years.

A new financial officer has reviewed the books and determined that due to a decline in advertising revenues, the company might not be able to provide the bonus.

The financial officer sends a memo stating that the bonus will not be provided unless employees help improve advertising revenues.

Now, let's examine each answer choice:

(A) If advertising revenues are down, the company is not responsible for providing Christmas bonuses to its employees unless the employees are willing to help improve advertising revenues.

The passage does not state that the company is relieved of its obligation due to lower revenues. In fact, the handbook guarantees the bonus, which suggests the company is still responsible. Incorrect.

(B) By asking the employees to contribute to an improvement in advertising revenues, the company is essentially asking employees to contribute to their own bonuses.

The memo states that employees must help improve advertising revenues in order to receive their bonuses. This implies that employees are being asked to contribute to the company's income so that the company can, in turn, afford their bonuses. Correct.

(C) If the company has always been able to provide the Christmas bonus in the past, there is no reason it should be unable to do so in the present, so the financial officer must be falsifying the numbers.

Just because the company has always provided bonuses before does not mean that it will always be able to do so. The passage states that advertising revenues have declined, which could legitimately impact the company’s ability to pay. There is no evidence that the financial officer is falsifying numbers. Incorrect.

(D) Unless employees contribute to the advertising revenues, the only other choice for the company will be to downsize and lay off employees.

The passage does not mention layoffs or downsizing as an alternative. It only states that the company may not afford the bonuses. Incorrect.

(E) Because the company has guaranteed the Christmas bonuses in the employee handbook, the employees will likely go on strike if they do not receive the bonuses.

While employees may be upset, the passage does not mention anything about striking or their likelihood of doing so. Incorrect.

Final Answer: (B) By asking the employees to contribute to an improvement in advertising revenues, the company is essentially asking employees to contribute to their own bonuses.

Bunuel · Answer

OFFICIAL EXPLANATION

Overview:

Question presents the scenario of a warehouse company that has promised to pay its employees a 3% bonus each Christmas. In fact, this promise is treated as a guarantee and is included in the employee handbook. The company’s new financial officer, however, claims that the company’s budget will not support the Christmas bonus this year unless employees are willing to help out: the financial officer sends a memo to all employees, letting them know that the company will be able to pay the Christmas bonuses if the employees contribute by helping to generate advertising revenues. The question asks the student to decide which of the answer choices is true if the information in the passage is true. This is essentially a question about inference; the student must consider what the passage is saying and what can be inferred from it. Most important to note is the fact that the financial officer is more or less telling the employees that if they work harder to get the advertising revenues, they will get their bonuses. In essence, the financial officer is saying that the employees will receive the bonuses if they do something to bring the bonus money into the company – in other words, to work for their own bonuses.

The Correct Answer:

B Answer choice (B) correctly deduces the implication of the financial officer’s memo: that the employees will essentially be contributing to their own bonuses, making the bonus something less of a bonus. Thus answer choice (B) is correct.

The Incorrect Answers:

A The company’s employee handbook guarantees a 3% Christmas bonus to its employees, and there is nothing in the passage to suggest that there is a codicil attached to this guarantee regarding whether the company’s budget supports the bonus. By promising the bonus to employees, the company makes itself responsible to find a way to pay it, so answer choice (A) cannot be inferred from the passage and is thus incorrect.

C Given the information about the financial officer’s memo, it may be inferred that the company has not had any trouble paying the Christmas bonus in the past. However, this in itself does not necessarily mean that the company will not have trouble paying it this year. What is more, nothing in the passage suggests that the company’s current financial state is a result of corruption on the financial officer’s part. Answer choice (C) does not have sufficient support within the passage and is thus incorrect.

D Although the financial officer might believe that downsizing would also benefit the company, there is no mention of this in the passage, nor can it be deduced from the information that is provided. Answer choice (D) is incorrect due to insufficient support.

E Although the employees might very well be planning to strike, there is nothing in the passage to suggest that this is the inevitable response or that a strike is imminent if the employees do not receive their Christmas bonus. Answer choice (E) cannot be supported by details in the passage, so it is incorrect

All of the employees at the Marshalltown Packing Warehouse receive

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All of the employees at the Marshalltown Packing Warehouse receive

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