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Re: Two years ago, the cost of the raw material used in a partic [#permalink]
why not B?
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Re: Two years ago, the cost of the raw material used in a partic [#permalink]
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POORVIBANSAL wrote:
why not B?


Conclusion: Aiming to improve profit margins, the company’s head of engineering has decided that he must find a new source for the raw material.

B. Although the earthquake occurred two years ago, the region’s mines have still not recovered to pre-earthquake production capacity.

We have to target the conclusion and conclusion says that profit needs to be increased. In option B it is not discussing any point related to increase of profit, in fact it is strengthening the conclusion, and we have to weaken it.
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Re: Two years ago, the cost of the raw material used in a partic [#permalink]
kruttikaaggarwal wrote:
I think C also casts doubt on the decision. If new source mines will not produce enough material, profits will still be down.



I think the term "PROFIT MARGIN" is the of major concern here.

In option C, even if the the mines do not produce enough raw material, the product will be generated in less amount but the profit margin will increase as raw material would be cheaper (Although overall profit may decrease, but profit margin will increase)

In option A, since competition is high, the company will have to price the product aggressively, thereby decreasing profit margin.
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