Critical Reasoning

Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages.
Which of the following, if true, would most weaken the argument above?
(A) Because they make a small number of precision instruments, gauge manufacturers cannot receive volume discounts on raw materials.
(B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales.
(C) Jones Industries has taken away twenty percent of Shelby Industries’ business over the last year.
(D) Shelby Industries pays its employees, on average, ten percent more than does Jones Industries.
(E) Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

Vishu

OA is irrelevant ..... i think its wrong just want to get the clarification ) with mine

Thank u

vishubn wrote:Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages.
Which of the following, if true, would most weaken the argument above?
(A) Because they make a small number of precision instruments, gauge manufacturers cannot receive volume discounts on raw materials.
(B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales.
(C) Jones Industries has taken away twenty percent of Shelby Industries’ business over the last year.
(D) Shelby Industries pays its employees, on average, ten percent more than does Jones Industries.
(E) Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

Vishu

OA is irrelevant ..... i think its wrong just want to get the clarification ) with mine

Thank u

Only B makes some sense

Lowering wages-affects quality-sales of product decrease-revenues affected-hence S. Indutries are may not gain competitive adv over the other co

B, between B and D

this one seemed tricky. what made it hard is that the stem doesn't specify the terms of competitive advantage i.e. is it market share, or sales, or price per gauge etc.

D is plausible but what works against D is that the stem doesn't mention how much the wage reduction will be.

C was a third option for me since it deals with changing market share, but, it has one make too many assumptions so i discarded C.

I chose B tooo !! but the OA said other wise soo i know its a typo

vishu
thansk u guys

@vishu OA is (D)? Where you found this question?
If it is possible please post OA explanation.

___
Information:
A and B manufacture/sell thes same gauges.
Wages 40% totals costs (both).

Main Point
Lower wage => advantage.

(A) Wage? CROSS OFF
(B) questions the implication
(C) last year? CROSS OFF
(D) ok
(E) maybe strengthen CROSS OFF

We need to decide between (B) and (D).
(D) needs several assumptions to be clear. So I would prefer (B), it directly questions the main point.

IMO B


Think in this way!

If i try to reduce cost , then my product would be cheaper ....

( but still i am assuming that shelly and jones have same price range)

but saying so , .. , if quality goes down so would be the demand , hence we can conclude it will rather loose its competitiveness....

B for me too

D would be the answer if the quetsion was strengthen the argument.

The answer should B. If quality is reduced and sales drop the cost reduced maybe mitigated.

vishubn wrote:Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages.
Which of the following, if true, would most weaken the argument above?
(A) Because they make a small number of precision instruments, gauge manufacturers cannot receive volume discounts on raw materials.
(B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales.
(C) Jones Industries has taken away twenty percent of Shelby Industries’ business over the last year.
(D) Shelby Industries pays its employees, on average, ten percent more than does Jones Industries.
(E) Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

Vishu

OA is irrelevant ..... i think its wrong just want to get the clarification ) with mine

Thank u

C) We can bring in outside factors that would weaken the conclusion that lowering the wages would give the company an competitive advantage. If C was true, this is another factor that also takes away the profits of Shelby.

What's the OA?

tritrantran wrote:

vishubn wrote:Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages.
Which of the following, if true, would most weaken the argument above?
(A) Because they make a small number of precision instruments, gauge manufacturers cannot receive volume discounts on raw materials.
(B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales.
(C) Jones Industries has taken away twenty percent of Shelby Industries’ business over the last year.
(D) Shelby Industries pays its employees, on average, ten percent more than does Jones Industries.
(E) Many people who work for manufacturing plants live in areas in which the manufacturing plant they work for is the only industry.

Vishu

OA is irrelevant ..... i think its wrong just want to get the clarification ) with mine

Thank u

C) We can bring in outside factors that would weaken the conclusion that lowering the wages would give the company an competitive advantage. If C was true, this is another factor that also takes away the profits of Shelby.

What's the OA?

You can correct me if I am wrong, but C is a NEUTRAL statement and does not weaken the arugment that Shelby should lower the wages. In fact it says nothing about the wages.

I feel like the correct answer is A. Can someone post the OA?

OA is B

Source: Verbal supplement ( Purple coloured-for colour lovers)

Problem no 11

Shelby Industries manufactures and sells the same gauges as Jones Industries. Employee wages account for forty percent of the cost of manufacturing gauges at both Shelby Industries and Jones Industries. Shelby Industries is seeking a competitive advantage over Jones Industries. Therefore, to promote this end, Shelby Industries should lower employee wages.
What is argument? Shelby industries seeking a competitive advantage over jones industries by lowering employee wages. What would have weaken the argument? If lowering the wages, reduce the productivity, or reduce the quality or employees left the jobs.

(B) Lowering wages would reduce the quality of employee work, and this reduced quality would lead to lowered sales. This is correct answer

Thakx
gaurav

Answer B seems to be logical one out of other answer choices