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most strongly supports which of the following?

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by ska7945 » Sat Sep 20, 2008 7:14 pm
United Lumber will use trees from its forests for two products. The tree trunks will be used for lumber and the branches converted into wood chips to make fiberboard. The cost of this conversion would be the same whether done at the logging site, where the trees are debranched, or at United's factory. However, wood chips occupy less than half the volume of the branches from which they are made.

The information given, if accurate, most strongly supports which of the following?

(A) Converting the branches into wood chips at the logging site would require transporting a fully assembled wood-chipping machine to and from the site.
(B) It would be more economical to debranch the trees at the factory where the fiberboard is manufactured.
(C) The debranching of trees and the conversion of the branches into chips are the only stages in the processing of branches that it would be in United's economic advantage to perform at the logging site.
(D) Transportation costs from the logging site to the factory that are determined by volume of cargo would be lower if the conversion into chips is done at the logging site rather than at the factory.
(E) In the wood-processing industry, branches are used only for the production of wood chips for fiberboard.
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Source: — Critical Reasoning |

by abhi75 » Sat Sep 20, 2008 9:42 pm
The answer seems to be D.

D says if the transportation cost is based on volume then it would cost less if the wood chips were converted at the logging site.

What is the OA ?
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by Indradeep » Sat Sep 20, 2008 10:43 pm
I agree..looks like D but how is the sentence "The cost of this conversion would be the same whether done at the logging site, where the trees are debranched, or at United's factory." come into all this?
It looks as if just the last sentence is used to infer something.
However, since the question is that of support, we need to live with that.
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by lachlanc » Sun Sep 21, 2008 4:55 am
Could it not be A?

A seems to infer that there is a trade off in costs in transporting a chipper to the logging site as opposed to transporting less volume back to the plant.
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by nikhilagrawal » Sun Sep 21, 2008 8:28 am
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by stop@800 » Sun Sep 21, 2008 2:06 pm
(B) It would be more economical to debranch the trees at the factory where the fiberboard is manufactured.

If debranching is at factory and the conversion is also at factory than it will certainly be more economical.

What you guys say about B?
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by banker1 » Mon Sep 22, 2008 1:13 pm
IMO: D

(A) seems out of scope. My understanding of the "conversion" is to set up a chipper at the logging site, not transfer it back and forth.

(B) just seems wrong to me.

(C) seems too difinitive.

(D) seems to be supported best by the stimulus. If trans cost are calc'd based on volume and chips take up less volume than branches, cost would be lower since chips take up less volume.

(E) is out of scope. The stimulus doesn't talk about materials that go into fiberboard.

What is the OA?
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by augus101 » Mon Sep 29, 2008 12:43 am
D is supported
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by LifetimesofSC » Tue Sep 30, 2008 8:28 am
D

Since they cost the same, an economic reason woulnt matter.

Focus on Volume.
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by peter.p.81 » Wed May 11, 2016 2:48 am
I am pretty sure that the right Answer is D
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