Critical Reasoning

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 wood-chipping 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.


Exactly what has to be supported :-
1] 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 OR 2] wood chips occupy less than half the volume of the branches from which they are made.


PLease kindly clarify along with your answers .

IMO D

P1: UL will use T for 2 Purposes --> TT for Lumber & Branch. converted to Chips for FB
P2: Cost of Conversion would be the same (@LS or @ Factory)
P3: Chips Occupy < 50% volume when chipped

Conclusion--> NA



Op1: Nothing said about FULLY ASSEMBLED WCM and to and fro
Op2: de-branching the trees at factory would be costlier (As per the premises P2 & P3)
Op3: Nothing said about any other process like termite treatment etc
Op4: Transportation cost logically is related to volume and therefore this option could be the ans
op5: Talks about WPI versus premise talks about United Lumber

Regarding your specific question, IMO, the impact of reduction in volume on chips, along with the condition of no price difference in conversion, could reduce the transportation cost. The paragraph compares two options, and suggest that though the process of conversion would be the same, the volume gets reduced if converted at the logging site. This outcome provides a subtle conclusion of an advantage of the volume difference that has to be matched with the given premises.

Thanks sourabh33 for a detailed explanation , it really helped me . I guess mindset plays a great role in solving any kind of question . I did interpret the question in wrong way , presssumptions are to avoided .