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Reasoning - Logical Reasoning:

Logical Reasoning

MCQ - 217-8169

Question:

The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires. That was intended to complement the model's image. The winning bid for supplying these tires was submitted by Rubco. Analysts concluded that the bid would only just cover Rubco's costs on the tires, but Rubco executives claim that winning the bid will actually make a profit for the company.

Which of the following, if true, most strongly justifies the claim made by Rubco's executives?

  1. In any Maxilla model, the spare tire is exactly the same make and model as the tires that are mounted on the wheels
  2. Rub co holds exclusive contracts to supply Maxilla with the tires for a number of other models made by Maxilla.
  3. The production facilities for the Max 100and those for the tires to be supplied by Rub co are located very near each other.
  4. Rub co holds exclusive contracts to supply Maxilla with the tires for a number of other models made by Maxilla.
  5. When Maxilla awarded the tire contract to Rub co, the only criterion on which Rubicon's bid was clearly ahead of its competitors' bids was price.

Correct Answer: D

Explanation:

Option A : We have already been told that the bid is expected to barely cover the costs of supplying the tires on the new cars, so the analysts mentioned in the passage have presumably already taken into account that there is a spa retire supplied forth Max 100.

Option B : If winning the bid led Rub co to win more exclusive contracts with the Maxilla, that might help support the executives' claim. But this statement indicates only that Rub co already has several exclusive contracts to supply Maxilla with tires, not that winning the bid has led to, or will lead to, more such contracts, which is what would be needed.

Option C : As in answer choice (A), this is relevantto the costsof supplyingthe tires for the Max 100, but presumably this was taken into account by the analysts when they concluded that the bid would barely cover Rubco's costson the tires. Option D : Correct. This indicates that by winning the bid Rubco has create the way to profit from the contract with Maxilux, specifically, by creating a market for replacement tires. Option E : This is likely oneof the reasons that Rubco's bidonly just covers the Rubco's costs on the tires; it does nothing to justify the executives' claims that the bid will lead to a profit for Rubco. The correct answer is D.

Record Performance

243 MCQ for effective preparation of the test of Logical Reasoning of Logical Reasoning section.

Read the MCQ statement: The Maxilux car company's design for its new luxury model, the Max 100, included a special design for the tires. That was intended to complement the m .... co's executives? , keenly and apply the method you have learn through the video lessons for Logical Reasoning to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 217-8169.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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