GMAT Critical Reasoning
Top Line Technologies and Eureka Industries distribute the same kind of rechargeable batteries to national electronic store chains. Employee wages comprise 38 percent of each company's total annual costs. In order to gain a competitive advantage over Eureka Industries, Top Line Technologies has proposed slashing employee wages by 10 percent.
Which of the following, if true, would most strengthen the argument above?
- A Top Line Technologies' rechargeable batteries have received more consistent consumer approval ratings than have Eureka Industries'.
- B Top Line Technologies will have to reduce the number of rechargeable batteries it distributes to client stores.
- C Eureka Industries is headquartered in a city that has a higher cost of living than does the city where Top Line Technologies is headquartered.
- D Top Line Technologies will begin distributing lower-quality rechargeable batteries.
- E Lowered employee wages have no effect on the quantity of rechargeable batteries that can be distributed to the client stores.
Correct Answer: E