Eton Company, an auto parts manufacturer, wants to extend it

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Eton Company, an auto parts manufacturer, wants to extend its network of suppliers to include Applia, a maker of a new type of ball bearing. Eton estimates that the new ball bearing will increase the operational efficiency of its steering unit by 30%. Therefore, executives of Eton believe that adding Applia to its list of suppliers will help improve Eton's profitability.

Which of the following would be most useful to investigate to determine whether the new relationship with Applia will contribute to Eton's profitability?

A) Will the new cost to purchase the new ball bearings from Applia exceed the cost of the ball bearings currently used to manufacture Eton Company's steering unit?

B) Do the buyers of Eton Company's steering units currently seek steering units with improved operational efficiency?

C) Are end users who might buy the improved steering unit aware that Eton Company is currently developing such a technology?

D) Are Eton Company's Executives aware of current broader trends in the automobile industry, including the design and manufacture of new automobile models?

E) Will the cost to purchase the new ball bearings offset the new revenue likely to be gained from the distribution of steering units equipped with the new ball bearings?

OA E

Source: EMPOWERgmat
Source: — Critical Reasoning |

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by deloitte247 » Sat Jul 13, 2019 11:35 pm

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We need to find what can help to determine if the given conclusion will work out.
Premise: Eton company, an auto parts manufacturer, includes Applia, a maker of a new type of ball bearing that can increase the operational efficiency of its steering unit by 30% to its network of suppliers.
Conclusion: Adding Applia to its lists of suppliers will help improve Eton's profitability.

OPTION A - INCORRECT
Well, if this happens, it reduces the possibility that this new supplier will help improve Eton's profitability.

OPTION B - INCORRECT
This creates a doubt and doesn't seem to help improve the conclusion.

OPTION C - INCORRECT
Whether or not the end users are aware of this operation is not useful to this investigation.

OPTION D - INCORRECT
This argument only deals with the auto part ''ball bearing'' any other automobile models is outside the scope of the argument.

OPTION E - CORRECT
It is important to know if the cost to purchase the new ball bearings will counter the proceeds of the company. This will determine if the company made a profit or not.