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United Lumber!

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by gmat_perfect » Wed Jul 21, 2010 11:28 am
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.

[spoiler]OA: D[/spoiler]

Please explain every option.
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Source: — Critical Reasoning |

by brijesh » Wed Jul 21, 2010 12:40 pm
gmat_perfect wrote: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. I will go for this option
(E) In the wood-processing industry, branches are used only for the production of wood chips for fiberboard.

[spoiler]OA: D[/spoiler]

Please explain every option.
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by reply2spg » Wed Jul 21, 2010 7:57 pm
good one, D is the answer.

Gmat Perfect - One request, could you please mention the difficulty level of the question????
gmat_perfect wrote: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.

[spoiler]OA: D[/spoiler]

Please explain every option.
Sudhanshu
(have lot of things to learn from all of you)
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by GMATSaga » Wed Jul 21, 2010 9:02 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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this question most strongly supports,
this question is not an argument, it is a fact based question. There are 2 cdt here
1) The cost of this conversion same whether done at the logging site, or at United's factory
But the author mentions a contrasting point. i.e.
2) wood chips occupy less volume than branches
The author is making the above point to support that even though the cost wood chips have less volume(Premise)
In order to support the above two points, if we consider that the cost that is related to both volume & cost. which is option D

Hope this clarifies your doubts.
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