QUESTION
Which of the following, if true, weakens the vice president’s argument?
A) The low-rent, low-tax area is located farther from delivery sites.
B) West Coast Unlimited’s competitors often place their distribution centers in relatively expensive locations.
C) Better use of technology could reduce distribution costs more than a relocation could.
D) Final customers are almost always unaware of the location of the wholesaler.
E) Delayed shipments from suppliers are already creating problems for West Coast Unlimited’s distribution network.
ANSWER
Answer: A
Explanation: A) Low rent and low taxes sound good, but if the distribution center is located farther away, Choice A, then shipping costs would probably be higher and might offset any other benefits. Choice B: What its competitors do may or may not be a good indication of what West Coast Unlimited should do. All things being equal, the cheaper approach sounds better. Choice C sounds good, but why not try to save money both ways? Choice D tells us that customers don’t know about these things, but that’s no reason to pay more if you don’t need to. Choice E suggests a problem with the current approach, which could only strengthen the argument.
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