Jellies

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 162
Joined: Thu Mar 18, 2010 5:43 am
Thanked: 6 times
Followed by:1 members

Jellies

by RumpelThickSkin » Sun Jul 25, 2010 10:36 pm
Jellies, a fruit snack manufacturer, was recently sued for advertising one of their product lines as "organic," even though the product contained ingredients not certified as organic. As a result of the suit, Jellies must use only organic ingredients for products labeled organic. Since organic ingredients are more expensive than are conventionally grown ingredients, production costs will increase at Jellies.

On which of the following assumptions does the conclusion to the left depend?


A - The financial impact of the lawsuit will hamper the budget for research and development at Jellies.

B - The judge's ruling in the lawsuit was fair and appropriate.

C - Organic ingredients will decline in price as more companies recognize the consumer demand for these products.

D - Jellies will continue to produce food labeled as organic. Their costs will not increase if they discontinue production of organic products.

E - Organic products can command a higher price on the market.

OA [spoiler]: D [/spoiler]
Last edited by RumpelThickSkin on Sun Jul 25, 2010 11:35 pm, edited 1 time in total.
Source: — Critical Reasoning |

User avatar
Legendary Member
Posts: 758
Joined: Sat Aug 29, 2009 9:32 pm
Location: Bangalore,India
Thanked: 67 times
Followed by:2 members

by sumanr84 » Sun Jul 25, 2010 11:09 pm
IMO : E
Jellies tried to capture the market by labeling its product as organic. So, it must have been assumed that organic products command a higher price.

Master | Next Rank: 500 Posts
Posts: 162
Joined: Thu Mar 18, 2010 5:43 am
Thanked: 6 times
Followed by:1 members

by RumpelThickSkin » Sun Jul 25, 2010 11:35 pm
sumanr84 wrote:IMO : E
Jellies tried to capture the market by labeling its product as organic. So, it must have been assumed that organic products command a higher price.
Updated OA. I though E initially as well. Can someone explain?

Senior | Next Rank: 100 Posts
Posts: 92
Joined: Tue Jul 20, 2010 6:56 am
Thanked: 4 times

by abhigang » Mon Jul 26, 2010 1:12 am
Conclusion : Production costs will increase
Premise (or the basis of the conclusion) : Organic ingredients are more expensive.

To bridge the gap we can assume that Jellies production of the "organic" products will continue as it was earlier the lawsuit. If you scan through the answer choices, D fits best.

The reason I feel E is not fitting here is that the price of the organic compound is actually a post production affair. The premise and conclusion talks exclusively about the production process.

User avatar
GMAT Instructor
Posts: 613
Joined: Thu Mar 22, 2007 6:17 am
Location: madrid
Thanked: 171 times
Followed by:64 members
GMAT Score:790

by kevincanspain » Mon Jul 26, 2010 6:11 am
sumanr84 wrote:IMO : E
Jellies tried to capture the market by labeling its product as organic. So, it must have been assumed that organic products command a higher price.
I don't agree: it could still make sense to offer organic profits even if they did not command higher prices
Kevin Armstrong
GMAT Instructor
Gmatclasses
Madrid

Legendary Member
Posts: 549
Joined: Wed Jan 06, 2010 7:00 am
Thanked: 16 times
Followed by:3 members

by ssgmatter » Mon Jul 26, 2010 7:34 am
RumpelThickSkin wrote:Jellies, a fruit snack manufacturer, was recently sued for advertising one of their product lines as "organic," even though the product contained ingredients not certified as organic. As a result of the suit, Jellies must use only organic ingredients for products labeled organic. Since organic ingredients are more expensive than are conventionally grown ingredients, production costs will increase at Jellies.

On which of the following assumptions does the conclusion to the left depend?


A - The financial impact of the lawsuit will hamper the budget for research and development at Jellies.

B - The judge's ruling in the lawsuit was fair and appropriate.

C - Organic ingredients will decline in price as more companies recognize the consumer demand for these products.

D - Jellies will continue to produce food labeled as organic. Their costs will not increase if they discontinue production of organic products.

E - Organic products can command a higher price on the market.

OA [spoiler]: D [/spoiler]
Go with D....it is the only option that makes the most sense...check for the conclusion here...and then you would understand why D is the correct one...

Cheers!
Best-
Amit

User avatar
Legendary Member
Posts: 1261
Joined: Sun Sep 14, 2008 3:46 am
Thanked: 27 times
GMAT Score:570

by reply2spg » Mon Jul 26, 2010 8:02 pm
Don't you think that E is already mentioned in the passage???
sumanr84 wrote:IMO : E
Jellies tried to capture the market by labeling its product as organic. So, it must have been assumed that organic products command a higher price.
Sudhanshu
(have lot of things to learn from all of you)

User avatar
Legendary Member
Posts: 758
Joined: Sat Aug 29, 2009 9:32 pm
Location: Bangalore,India
Thanked: 67 times
Followed by:2 members

by sumanr84 » Mon Jul 26, 2010 10:13 pm
RumpelThickSkin wrote:
D - Jellies will continue to produce food labeled as organic. Their costs will not increase if they discontinue production of organic products.
I didn't like the assumption being presented in a language that is quite flat. Do you think BOLD part is eligible to be an assumption statement ?

Infact, D is directly mentioned in the argument. D is presented as a double negation statement. If you put it straight then below is how it will look,
Their costs will increase if they continue production of organic products.
which is a direct derivative of last line "Since organic ingredients are more expensive than are conventionally grown ingredients, production costs will increase at Jellies. "

Let me know how you see it..

Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Wed Aug 26, 2009 2:09 pm
Thanked: 1 times

by PRABHDEEP gill » Mon Jul 26, 2010 11:23 pm
I think the answer is clearly (D).

Just identify the premise and the conclusion.

Premise:Organic ingredients are more expensive than are conventionally grown ingredients

Conclusion: production costs will increase at Jellies (Note :Production costs are overall and not just for organic products which might be a subset of all the products in the company)

For assumption, find the MISSING link between the two :
premise states that organic ingredients are more expensive and the conclusion talks with certainty (WILL) that production costs will increase - therefore the arguments assumes that some organic products will definitely be produced. and that's exactly what D says.

I agree the second part of the assumption seems rather strange and convoluted but I prefer to ignore it as the first stmt is very clear in stating the assumption.

Legendary Member
Posts: 1119
Joined: Fri May 07, 2010 8:50 am
Thanked: 29 times
Followed by:3 members

by diebeatsthegmat » Sat Jul 31, 2010 10:00 am
sumanr84 wrote:IMO : E
Jellies tried to capture the market by labeling its product as organic. So, it must have been assumed that organic products command a higher price.
oa should be D because even if the price in the market is high thus company maybe still get profit when produce the product however its production cost still gets high. moreover, the thing we are taking care here is production cost

Master | Next Rank: 500 Posts
Posts: 227
Joined: Wed Dec 16, 2009 1:15 am
Location: Colombo, Sri Lanka
Thanked: 3 times

by neha.patni » Sat Jul 31, 2010 10:06 am
RumpelThickSkin wrote:Jellies, a fruit snack manufacturer, was recently sued for advertising one of their product lines as "organic," even though the product contained ingredients not certified as organic. As a result of the suit, Jellies must use only organic ingredients for products labeled organic. Since organic ingredients are more expensive than are conventionally grown ingredients, production costs will increase at Jellies.

On which of the following assumptions does the conclusion to the left depend?


A - The financial impact of the lawsuit will hamper the budget for research and development at Jellies.

B - The judge's ruling in the lawsuit was fair and appropriate.

C - Organic ingredients will decline in price as more companies recognize the consumer demand for these products.

D - Jellies will continue to produce food labeled as organic. Their costs will not increase if they discontinue production of organic products.

E - Organic products can command a higher price on the market.

OA [spoiler]: D [/spoiler]

IMO D

To lead to the conclusion that production cost will increase, it is necessary to show that Jellies continues to produce organic food containing only organic ingredients, which are expensive.