Yorco And Zortech Are Two Corporations That Employ Large Numbers GMAT Critical Reasoning

Question: Which of the following most logically completes the argument?

Yorco and Zortech are two corporations that employ large numbers of full-time workers who are paid by the hour. Publicly available records indicate that Yorco employs roughly the same number of such hourly wage workers as Zortech does but spends a far higher total sum per year on wages for such workers. Therefore, hourly wages must be higher, on average, at Yorco than at Zortech, since _____.

(A) Zortech spends a higher total sum per year than Yorco does to provide its hourly wage workers with benefits other than wages
(B) the work performed by hourly wage workers at Zortech does not require a significantly higher level of skill than the work performed by hourly wage workers at Yorco does
(C) the proportion of all company employees who are hourly wage workers is significantly greater at Yorco than it is at Zortech
(D) overtime work, which is paid at a substantially higher rate than work done during the regular work week, is rare at both Yorco and Zortech
(E) the highest hourly wages paid at Yorco are higher than the highest hourly wages paid at Zortech

“Yorco and Zortech are two corporations that employ large numbers” - is a critical thinking GMAT question. In order to respond to the question, a candidate may decide to present an illogical argument or look for evidence that would refute it. A candidate's capacity for logic and analysis is evaluated on the GMAT critical reasoning exam. Candidates must point out the argument's benefits and drawbacks as well as its logical errors with regard to this subject. Ten to thirteen questions on critical reasoning are included in the CR section of the 36 GMAT verbal questions.

Answer: (D)
Explanation: Two companies that have a lot of full-time employees who are paid by the hour are Yorco and Zortech. According to publicly available records, Yorco employs roughly the same number of these hourly wage workers as Zortech, but spends a much higher total amount annually on their wages. Yorco must offer, on average, higher hourly wages than Zortech.

Let us examine each option separately that logically supports the argument.

Option – A : Incorrect
According to this option, Zortech spends more money overall each year than Yorco does to offer its hourly employees benefits in addition to pay. Benefits spending is a different subject. The issue is wage expenditures. As a result, this option is rejected.

Option – B : Incorrect
This option states that there is no appreciable difference in the level of skill required for the work performed by hourly wage employees at Zortech and Yorco. The issue is not with skills. As a result, this option is rejected.

Option – C : Incorrect
According to this option, Yorco employs a significantly higher percentage of hourly workers than Zortech does of the total workforce. It is outside the scope to discuss other employee types. As a result, this option is rejected.

Option – D : Correct
This option states that both Yorco and Zortech rarely require employees to work overtime, which is compensated at a rate significantly higher than work performed during the typical work week. The argument jumps to the conclusion that Yorco's average is higher because it is known that Yorco spent more overall than Zortech. We know two elements are necessary in order to draw conclusions about the average. One is the overall total, and the other is the overall number of hours. The increase in total expenditures will be explained by longer working hours, not necessarily by a higher average, in Yorco. As a result, this is the right answer.

Option – E : Incorrect
This option states that Yorco pays higher hourly wages than Zortech does for the highest hourly rate. The average hourly wage is the topic of the conclusion. It is unknown about the breakdown of the total amounts that went into calculating the average. As a result, this option is rejected.

From the explanations given above, it is clear that the fourth option is the right answer.

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