Tough CR question-

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\'manpreet singh: Master | Next Rank: 500 Posts; Posts: 271; Joined: Tue May 22, 2012 3:22 amFollowed by: 3 members; Thanked: 7 times

by \'manpreet singh » Wed Jun 19, 2013 2:37 am

The cost of producing radios in Country Q is 10 percent less than the cost of producing radios in Country Y.
Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios
from Country Q to Country Y than to produce radios in Country Y.
The statements above, if true, best support which of the following assertions?
(A) Labor costs in Country Q are 10 percent below those in Country Y.
(B) Importing radios from Country Q to Country Y will eliminate 10 percent of the manufacturing jobs in
Country Y.
(C) The tariff on a radio imported from Country Q to Country Y is less than 10 percent of the cost of
manufacturing the radio in Country Y.
(D) The fee for transporting a radio from Country Q to Country Y is more than 10 percent of the cost of
manufacturing the radio in Country Q.
(E) It takes 10 percent less time to manufacture a radio in Country Q than it does in Country Y.

Ans is C

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Source: Beat The GMAT — Critical Reasoning | Wed Jun 19, 2013 2:37 am

GMATGuruNY: GMAT Instructor; Posts: 15539; Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members; Location: New York, NY; Thanked: 13060 times; GMAT Score:790

by GMATGuruNY » Wed Jun 19, 2013 4:50 am

'manpreet singh wrote:The cost of producing radios in Country Q is 10 percent less than the cost of producing radios in Country Y.
Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios
from Country Q to Country Y than to produce radios in Country Y.
The statements above, if true, best support which of the following assertions?
(A) Labor costs in Country Q are 10 percent below those in Country Y.
(B) Importing radios from Country Q to Country Y will eliminate 10 percent of the manufacturing jobs in
Country Y.
(C) The tariff on a radio imported from Country Q to Country Y is less than 10 percent of the cost of
manufacturing the radio in Country Y.
(D) The fee for transporting a radio from Country Q to Country Y is more than 10 percent of the cost of
manufacturing the radio in Country Q.
(E) It takes 10 percent less time to manufacture a radio in Country Q than it does in Country Y.

Ans is C

Country Y:
Let the production cost per radio = 100.

Country Q:
Let P = the production cost and T = tariff and transportation costs.
Since it is cheaper to import a radio from Q than to spend $100 on a radio from Y, we get:
P+T < 100.
Since the production cost in Q is 10% less than the production cost in Y, P = 90.
Substituting P=90 into P+T < 100, we get:
90 + T < 100
T < 10.

The case above illustrates that C must be true:
The tariff on a radio imported from Country Q is less than 10 percent of the cost of manufacturing the radio in Country Y.

The correct answer is C.

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Gaurav 2013-fall: Master | Next Rank: 500 Posts; Posts: 307; Joined: Wed Feb 22, 2012 9:45 pm; Thanked: 12 times; GMAT Score:700

by Gaurav 2013-fall » Wed Jun 19, 2013 8:40 pm

IMO C
wasnt tough at all!

Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done. Now, if you know what you're worth, then go out and get what you're worth. But you gotta be willing to take the hit, and not pointing fingers saying you ain't where you are because of him, or her, or anybody. Cowards do that and that ain't you. You're better than that! (Rocky VI)

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jack.daniel: Junior | Next Rank: 30 Posts; Posts: 22; Joined: Mon Apr 29, 2013 10:53 pm; Thanked: 2 times

by jack.daniel » Thu Jun 20, 2013 6:13 am

A, B and E are about labor cost, jobs and manufacturing time but these topics are not mentioned in stimulus (which is true). So eliminate A, B and E.
D does not support the stimulus. Infact, it weakens. So, eliminate D.

C supports the fact - "it is cheaper for a company...............to produce radio in country Y"

IMO C

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anubhavit: Newbie | Next Rank: 10 Posts; Posts: 4; Joined: Mon Oct 27, 2008 3:28 pm; Location: India; GMAT Score:710

by anubhavit » Thu Jun 20, 2013 9:30 pm

C is correct. Using process of elimination easy to conclude answer.

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itskals: Junior | Next Rank: 30 Posts; Posts: 11; Joined: Thu Jun 20, 2013 11:54 pm; Location: Bangalore; Thanked: 3 times

by itskals » Fri Jun 21, 2013 12:06 am

This is an Inference/Conclusion Questions Type.

Tip : For inference questions the Correct Ans is blatantly stated in the passage. This means eliminate any answer choice blindly that brings in a new 'word' that is not spoken about in the Passage.

So as you can see in Answer choices : (A), (B) and (E) there are words which are not spoken about in the passage; whereas (D) is NOT what is stated in the Passage ( this is opposite/goes against what is given) . Hence your correct ans is (C)

Hope this helps.

Thanks,
Kalyan
GMAT Trainer
www.csqrl.com

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