Critical Reasoning

gmatnmein2010 wrote:The head baker at Barry's Bagels can either purchase flour in-person from the local flour mill, Larry's Local Mill, or order a shipment of flour from an out-of-state mill, Isadore's Interstate Mill. The cost of the flour from Isadore's Interstate Mill is 10 percent less than the cost of the flour from Larry's Local Mill. Even after shipping and handling fees are added, it is still cheaper to order flour that has to be shipped from Isadore's than to buy flour locally from Larry's.

The statements above, if true, best support which of the following assertions?


1)Production costs at Isadore's Interstate Mill are 10 percent below those at Larry's Local Mill.
it cud be true but not must be true

2)Buying flour from Isadore's Interstate Mill will eliminate 10 percent of the local flour mill jobs.
not supported by passage

3)The shipping and handling fees for a batch of flour purchased from Isadore's Interstate Mill are less than 10 percent of the cost of an identical batch of flour purchased from Larry's Local Mill.
correct

4)The shipping and handling fees for a batch of flour purchased from Isadore's Interstate Mill are more than 10 percent of the cost of Isadore's flour.
If shipping and handling fees were more than 10 percent, purchasing from the out-of-state supplier would be more expensive, not less.

5)Isadore's Interstate Mill produces flour 10% more efficiently than Larry's Local Mill does.
Higher efficiency could explain the lower price of the flour from Isadore's Interstate Mill, but there may be a variety of other reasons. We cannot state this conclusively.

gmatnmein2010 wrote:The head baker at Barry's Bagels can either purchase flour in-person from the local flour mill, Larry's Local Mill, or order a shipment of flour from an out-of-state mill, Isadore's Interstate Mill. The cost of the flour from Isadore's Interstate Mill is 10 percent less than the cost of the flour from Larry's Local Mill. Even after shipping and handling fees are added, it is still cheaper to order flour that has to be shipped from Isadore's than to buy flour locally from Larry's.

The statements above, if true, best support which of the following assertions?

1)Production costs at Isadore's Interstate Mill are 10 percent below those at Larry's Local Mill.
Incorrect : Production costs at Isadore's Interstate Mill is not discussed in the stimulus. Eliminated

2)Buying flour from Isadore's Interstate Mill will eliminate 10 percent of the local flour mill jobs.
Incorrect : Local flour mill jobs is not stated in the passage. Eliminated.

3)The shipping and handling fees for a batch of flour purchased from Isadore's Interstate Mill are less than 10 percent of the cost of an identical batch of flour purchased from Larry's Local Mill.
Correct : This correctly paraphrases what is mentioned in the passage above.

4)The shipping and handling fees for a batch of flour purchased from Isadore's Interstate Mill are more than 10 percent of the cost of Isadore's flour.
Incorrect : This is opposite of what is stated in the passage.

5)Isadore's Interstate Mill produces flour 10% more efficiently than Larry's Local Mill does.
Incorrect : Efficiency of both mills is not discussed above.