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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## United Lumber will use trees from its forests ##### This topic has 1 expert reply and 0 member replies ### Top Member ## United Lumber will use trees from its forests 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. What is wrong with Options A and C? OA D ### GMAT/MBA Expert Legendary Member Joined 14 Jan 2015 Posted: 2667 messages Followed by: 122 members Upvotes: 1153 GMAT Score: 770 Top Reply lheiannie07 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. What is wrong with Options A and C? OA D We're trying to determine what is true based on the facts provided in the argument. The argument summarized: Cost of conversion - same at logging site and at factory; wood chips occupy less than half the volume of the branches A doesn't have to be true. Why would the wood-chipping machine need to be fully assembled before it was transported? Couldn't it be transported in parts and then assembled on site? C is problematic because of the word "only." It's certainly possible that there are other functions it would be more cost effective to perform at the logging site. D is air-tight. The chips take up less volume than the branches. So if transportation costs are determined by volume, it'll be cheaper to transport the lower volume chips than the higher volume branches. _________________ Veritas Prep | GMAT Instructor Veritas Prep Reviews Save$100 off any live Veritas Prep GMAT Course

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