BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

The wholesale cost of asbestos

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
User avatar
Legendary Member
Posts: 1893
Joined: Sun May 30, 2010 11:48 pm
Thanked: 215 times
Followed by:7 members

The wholesale cost of asbestos

by kvcpk » Wed Aug 18, 2010 9:53 am
The wholesale cost of asbestos, used in the manufacture of fire-retardant asbestos shorts, has seen a significant reduction in the past year, unlike that of its substitute, raw wire mesh. Thus, while asbestos shorts stores' retail prices have yet to fall, they will certainly do so eventually.

Which of the following, if true, most weakens this argument?

A. The weaving costs for asbestos cloth rose in the past year.
B. The gross wholesale price for untreated asbestos is usually more than the same volume of untreated wire mesh.
C. The average store specializing in retail sale of asbestos shorts has seen its operating costs remain unchanged in the past year.
D. Retail price changes always lag behind wholesale price changes.
E. Asbestos manufacturing costs increased in the past year.

OA Later
"Once you start working on something,
don't be afraid of failure and don't abandon it.
People who work sincerely are the happiest."
Chanakya quotes (Indian politician, strategist and writer, 350 BC-275BC)
Top
Source: — Critical Reasoning |
User avatar
Master | Next Rank: 500 Posts
Posts: 422
Joined: Mon Aug 09, 2010 11:47 am
Thanked: 22 times
Followed by:1 members
GMAT Score:680

by beatthegmatinsept » Wed Aug 18, 2010 10:00 am
IMO C.
Being defeated is often only a temporary condition. Giving up is what makes it permanent.
Top
Senior | Next Rank: 100 Posts
Posts: 70
Joined: Sat Aug 07, 2010 8:33 am

by SeemaSkl » Wed Aug 18, 2010 12:07 pm
Argument says retail price of finished product will decrease because cost of raw material decreased. If some other cost component increases, this argument can be weakened. 'A' talks about weaving costs that rose. This will weaken the conclusion that retail prices will fall.

So IMO A.
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 422
Joined: Mon Aug 09, 2010 11:47 am
Thanked: 22 times
Followed by:1 members
GMAT Score:680

by beatthegmatinsept » Wed Aug 18, 2010 12:23 pm
kvcpk wrote:The wholesale cost of asbestos, used in the manufacture of fire-retardant asbestos shorts, has seen a significant reduction in the past year, unlike that of its substitute, raw wire mesh. Thus, while asbestos shorts stores' retail prices have yet to fall, they will certainly do so eventually.

Which of the following, if true, most weakens this argument?

A. The weaving costs for asbestos cloth rose in the past year.
B. The gross wholesale price for untreated asbestos is usually more than the same volume of untreated wire mesh.
C. The average store specializing in retail sale of asbestos shorts has seen its operating costs remain unchanged in the past year.
D. Retail price changes always lag behind wholesale price changes.
E. Asbestos manufacturing costs increased in the past year.

OA Later
[spoiler]The arguement says that asbestos shorts stores' retail prices will certainly fall eventually.
I chose C because it states that an avg retail sale store has not seen its operating costs change over the past one year. While the premise says that over the past 1 year wholesale cost of asbestos is decreasing, Choice C basically shows that the decreasing cost of asbestos has not resulted in a decrease in their operating costs.[/spoiler]
Being defeated is often only a temporary condition. Giving up is what makes it permanent.
Top
Senior | Next Rank: 100 Posts
Posts: 57
Joined: Thu Feb 26, 2009 3:25 pm
Thanked: 5 times
GMAT Score:730

by 007.r.mason » Wed Aug 18, 2010 1:40 pm
IMO A as well. That is the only argument that is in the scope of the passage.. only accountants know what operating costs really are....
Aim high!!
Achieve excellence!!
Top
User avatar
Legendary Member
Posts: 1893
Joined: Sun May 30, 2010 11:48 pm
Thanked: 215 times
Followed by:7 members

by kvcpk » Wed Aug 18, 2010 8:52 pm
OA is A
"Once you start working on something,
don't be afraid of failure and don't abandon it.
People who work sincerely are the happiest."
Chanakya quotes (Indian politician, strategist and writer, 350 BC-275BC)
Top
Master | Next Rank: 500 Posts
Posts: 385
Joined: Sun Jul 12, 2009 10:16 pm
Thanked: 29 times
Followed by:2 members
GMAT Score:710

by debmalya_dutta » Wed Aug 18, 2010 10:06 pm
my pick is A
though the raw material cost has fallen, an increase in weaving costs would mean no fall in the final prices of the shorts
@Deb
Top
Master | Next Rank: 500 Posts
Posts: 364
Joined: Tue Apr 20, 2010 5:13 am
Thanked: 31 times
Followed by:3 members

by FightWithGMAT » Thu Aug 19, 2010 8:26 am
kvcpk wrote:The wholesale cost of asbestos, used in the manufacture of fire-retardant asbestos shorts, has seen a significant reduction in the past year, unlike that of its substitute, raw wire mesh. Thus, while asbestos shorts stores' retail prices have yet to fall, they will certainly do so eventually.

Which of the following, if true, most weakens this argument?

A. The weaving costs for asbestos cloth rose in the past year.
B. The gross wholesale price for untreated asbestos is usually more than the same volume of untreated wire mesh.
C. The average store specializing in retail sale of asbestos shorts has seen its operating costs remain unchanged in the past year.
D. Retail price changes always lag behind wholesale price changes.
E. Asbestos manufacturing costs increased in the past year.

OA Later
It is A.

The author leaves big gaps to be attacked.

RAW asbestos ---> asbestos fabric-------> retails sells

Raw material cost has gone down does not mean that the manufacturing cost had also gone down.

A anti fill the gap.
Top
Post new topic Post Reply
• Page 1 of 1