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In Brindon County, virtually all of the fasteners—such as nuts, bolts, and screws—used by workshops and manufacturing firms have for...

GMAT Critical Reasoning : (CR) Questions

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Critical Reasoning
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In Brindon County, virtually all of the fasteners—such as nuts, bolts, and screws—used by workshops and manufacturing firms have for several years been supplied by the Brindon Bolt Barn, a specialist wholesaler. In recent months many of Brindon County's workshops and manufacturing firms have closed down, and no new ones have opened. Therefore, the Brindon Bolt Barn will undoubtedly show a sharp decline in sales volume and revenue for this year as compared to last year.

The argument depends on assuming which of the following?

A
Last year the Brindon Bolt Barn's sales volume and revenue were significantly higher than they had been the previous year.
B
The workshops and manufacturing firms that have remained open have a smaller volume of work to do this year than they did last year.
C
Soon the Brindon Bolt Barn will no longer be the only significant supplier of fasteners to Brindon County's workshops.
D
The Brindon Bolt Barn's operating expenses have not increased this year.
E
The Brindon Bolt Barn is not a company that gets the great majority of its business from customers outside Brindon County.
Solution

Passage Analysis:

Text from Passage Analysis
"In Brindon County, virtually all of the fasteners—such as nuts, bolts, and screws—used by workshops and manufacturing firms have for several years been supplied by the Brindon Bolt Barn, a specialist wholesaler."
  • What it says: Brindon Bolt Barn has been the main supplier of fasteners to almost all workshops and manufacturing firms in the county for years
  • What it does: Sets up the business situation and establishes Brindon Bolt Barn's dominant market position
  • What it is: Author's background information
  • Visualization: Market Share: Brindon Bolt Barn supplies ~95% of all fasteners to workshops and manufacturing firms in the county
"In recent months many of Brindon County's workshops and manufacturing firms have closed down, and no new ones have opened."
  • What it says: The customer base has shrunk significantly - many businesses closed and none opened recently
  • What it does: Introduces a major change that affects Brindon Bolt Barn's established customer base
  • What it is: Author's factual claim
  • Visualization: Customer Base Change: Before: 100 workshops/firms → Recent months: 70 workshops/firms (30 closed, 0 new ones opened)
"Therefore, the Brindon Bolt Barn will undoubtedly show a sharp decline in sales volume and revenue for this year as compared to last year."
  • What it says: The author concludes that Brindon Bolt Barn will definitely experience a big drop in sales and revenue this year
  • What it does: Draws a definitive conclusion by connecting the customer base decline to business performance
  • What it is: Author's main conclusion
  • Visualization: Projected Impact: Last year's revenue: $500k → This year's revenue: $350k (sharp 30% decline due to lost customers)

Argument Flow:

The argument starts by establishing Brindon Bolt Barn's market dominance, then presents evidence of customer base decline, and concludes this will definitely lead to reduced business performance.

Main Conclusion:

Brindon Bolt Barn will undoubtedly show a sharp decline in sales volume and revenue this year compared to last year.

Logical Structure:

The argument assumes that fewer customers automatically means proportionally lower sales, without considering other factors that might maintain or even increase sales per remaining customer.

Prethinking:

Question type:

Assumption - We need to find what the author must believe is true for their conclusion to hold. This is about identifying unstated premises that are necessary for the logical jump from premise to conclusion.

Precision of Claims

The conclusion is very definitive - 'undoubtedly show a sharp decline' - so we need assumptions that support this certainty. The key claims involve quantity (many closures, no new openings) and projected activity (definite sales decline).

Strategy

The author jumps from 'many customer businesses closed and none opened' to 'Brindon Bolt Barn will definitely have sharp sales decline.' We need to think: what could make this conclusion false while keeping the stated facts true? What gaps exist in this reasoning that need to be filled?

Answer Choices Explained
A
Last year the Brindon Bolt Barn's sales volume and revenue were significantly higher than they had been the previous year.

This discusses last year's performance relative to the previous year, but the argument's conclusion compares this year to last year. What happened in years before last year is irrelevant to whether this year will show a decline compared to last year. The argument doesn't depend on any particular trend from previous years.

B
The workshops and manufacturing firms that have remained open have a smaller volume of work to do this year than they did last year.

While this would support the conclusion by suggesting remaining businesses need fewer fasteners, it's not necessary for the argument. Even if remaining businesses maintained their same volume of work, the conclusion could still hold true simply because there are fewer total businesses operating. The argument doesn't require that remaining businesses also reduce their individual consumption.

C
Soon the Brindon Bolt Barn will no longer be the only significant supplier of fasteners to Brindon County's workshops.

This talks about future competition, but the argument's conclusion is about this year's sales performance. Whether Brindon Bolt Barn will face competition 'soon' doesn't affect whether they'll show a decline this year based on current customer closures. The timing and relevance don't align with the argument's scope.

D
The Brindon Bolt Barn's operating expenses have not increased this year.

Operating expenses are about costs, not revenue and sales volume. The conclusion specifically mentions sales volume and revenue decline, which can occur regardless of whether operating expenses increased, decreased, or stayed the same. Expenses don't affect the customer base impact on sales.

E
The Brindon Bolt Barn is not a company that gets the great majority of its business from customers outside Brindon County.

This is crucial because if Brindon Bolt Barn gets most of its business from customers outside Brindon County, then the closure of businesses within the county wouldn't necessarily cause a sharp decline in overall sales. The argument's logic completely depends on assuming that Brindon County represents a significant portion of their business. Without this assumption, the conclusion falls apart.

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