CR - Inference

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CR - Inference

by karthikpandian19 » Thu Jun 28, 2012 6:13 pm
The cost of manufacturing LED screens in Country X is 30 percent less than the cost of manufacturing LED screens in Country Y. Even after transportation costs and import tariffs are considered, it is still more expensive for a company in Country Y to manufacture LED screens in Country Y than to import LED screens from Country X to Country Y.

Assuming that the above statements are true, which of the following can be inferred?


(A) The cost of transporting an LED screen from Country X to Country Y is more than 30 percent of the cost of manufacturing the LED screen in Country X.

(B) The raw materials required for manufacturing LED screens are less expensive in Country X than in Country Y.

(C) It is more expensive for a company in Country X to manufacture LED screens in Country X than to import LED screens from Country Y to Country X.

(D) The import tariff on an LED screen imported from Country X to Country Y is less than 30 percent of the cost of manufacturing an LED screen in Country Y.

(E) LED screens manufactured in Country X are less expensive than those manufactured in Country Y because Country X can expect to export at least some of its LED screens to Country Y.
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by Birottam Dutta » Thu Jun 28, 2012 6:37 pm
Here, it says that

cost of manufacturing LEDs in country X is 30% lesser than manufacturing in country Y.

Even after import costs and tariffs in country X, it is still cheaper than in country Y.

This implies that imports and tariffs are less than 30% of the cost of manufacturing the LEDs in country Y.

This is clearly stated in option D.

Hence, D!