In order to save money, some of Company X’s manufacturing plants converted from oil fuel to natural gas last year, when the cost of oil was more than the cost of natural gas. Because of a sudden, unexpected shortage, however, natural gas now costs more than oil, the price of which has fallen steeply over the past year. The cost of conversion back to oil would more than negate any cost savings in fuel. So Company X’s fuel costs this year will be significantly higher than they were last year.
Which of the following is an assumption on which the argument above depends?
A] Company X does not have money set aside for the increased costs of fuel.
B] The increase in the cost of fuel cannot be offset by reductions in other operating expenses.
C] The price of natural gas will never again fall below that of oil.
D] The cost of fuel needed by those of Company X’s plants that converted to natural gas is not less than the cost of fuel needed by those plants still using oil.
E] The price of oil will not experience a sudden and steep increase.
[spoiler]
The OA is D.[/spoiler]
Solve this question using proper mathematical figures, and you will find that the correct answer comes out to be D very easily. A manager's CR question I would Say...
Which of the following is an assumption on which the argument above depends?
A] Company X does not have money set aside for the increased costs of fuel.
B] The increase in the cost of fuel cannot be offset by reductions in other operating expenses.
C] The price of natural gas will never again fall below that of oil.
D] The cost of fuel needed by those of Company X’s plants that converted to natural gas is not less than the cost of fuel needed by those plants still using oil.
E] The price of oil will not experience a sudden and steep increase.
[spoiler]
The OA is D.[/spoiler]
Solve this question using proper mathematical figures, and you will find that the correct answer comes out to be D very easily. A manager's CR question I would Say...
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LEARNING, APPLICATION AND TIMING IS THE FACT OF GMAT AND LIFE AS WELL... KEEP PLAYING!!!
Whenever you feel that my post really helped you to learn something new, please press on the 'THANK' button.
