nitin6305 wrote:
Can someone please help me with eliminating option C. Aren't we talking about profits here?
Conclusion says that move is smart because it will avoid profit declines.
Conclusion says that move is smart because it will avoid profit declines.
Hi nitin
I'm quite confused. You posted OA is C, but you ask everybody to give you reasons to eliminate C.
So, what is the OA actually?I did pick B and I'm not convinced by C (if C is the OA). The stimulus say "the company must pay its workers for every car washed". It means the company pays its employees for every car they wash. ==> the fewer cars the employees wash, the less salaries they receive. Labor cost is operating cost. (I'm 100% sure because I'm an accountant.) ==> by removing the coupons program, the company can adjust its operating costs.
==> The operating costs of the car wash service CAN BE ADJUSTED by removing the coupon program. Hence, C is not a flaw of reasoning.
Please confirm nitin6305.
Thanks.