A circuits manufacturer in California needs a significant amount of pure silver for its wires. The manufacturer had two choices for a source of silver of this grade: a silver mine in a neighboring state or a silver distributor in East Asia. The latter was 30% less expensive when all costs, including transportation and related expenses, were included. The CEO of the manufacturer signed a long-term deal with the East Asian silver distributor, arguing that choice will save money over the course of the contract. This choice of the East Asian silver distributor is likely to prove more expensive than the silver mine in the neighboring state because ___________.

Which of the following most logically completes the passage?

A. the insurance rate for goods shipped over major oceans, especially a shipping route halfway around the globe, is considerably higher than the insurance for all forms of land-based shipping.

B. the pure silver needed for circuitry is typically much more expensive per ounce than the silver that appears in jewelry

C. the workers at the mine in the neighboring state are in a union that has recently gone on strike for higher wages and better working conditions

D. diesel, which should be used to fuel transcontinental supply ships per international regulations, was at an unusually low price during the time when this manufacturer modeled the costs.

E. as of last month, new refinement techniques have caused the price of domestic silver to reach new lows.


OA D

Source: Magoosh