7. (24401-!-item-!-188;#058&001291)
United Lumber will use trees fromits forests for two products. The treetrunks will be used for lumber and the branches converted into wood chips tomake fiberboard. The cost of thisconversion would be the same whether done at the logging site, where the treesare debranched, or at United's factory. However, wood chips occupy less than half the volume of the branchesfrom which they are made.
The information given, if accurate,most strongly supports which of the following?
(A) Converting the branches intowood chips at the logging site would require transporting a fully assembledwood-chipping machine to and from the site.
(B) It would be more economical to debranch the trees at the factory wherethe fiberboard is manufactured.
(C) The debranching of trees andthe conversion of the branches into chips are the only stages in the processingof branches that it would be in United's economic advantage to perform at thelogging site.
(D) Transportation costs from thelogging site to the factory that are determined by volume of cargo would belower if the conversion into chips is done at the logging site rather than atthe factory.
(E) In the wood-processingindustry, branches are used only for the production of wood chips forfiberboard.
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发表于 2010-9-7 01:49:59
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