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# The cost of producing radios in Country Q is 10 percent less than the cost

The cost of producing radios in Country Q is 10 percent less than the cost of producing radios in Country Y. Even after transportation fees and tariff charges are added, it is still cheaper for a company to import radios from Country Q to Country Y than to produce radios in Country Y.
The statements above, if true, best support which of the following assertions?
(A) Labor costs in Country Q are 10 percent below those in Country Y.
(B) Importing radios from Country Q to Country Y will eliminate 10 percent of the manufacturing jobs in country Y.
(C) The tariff on a radio imported from Country Q to Country Y is less than 10 percent of the cost of the manufacturing the radio in Country Y.
(D) The fee for transporting a radio from Country Q to Country Y is more than 10 percent of the cost of manufacturing the radio in Country Q.
(E) It takes 10 percent less time to manufacture a radio in Country Q than it does in Country Y.

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Let us assume that radio manufacturing cost in Country Y is \$10. Now because Country Q's manufacturing cost are 10% cheaper, they make radios for \$ 9.
I will use to above information to reach to the answer.
( A ) - Out of Scope
( B ) - This cannot be inferred.
( C ) - Correct, this is what the stem is also saying that over all cost is less, which means transporation cost + import cost is less than 10 %
( D ) - If it would have been more than the over all cost would not have been less than 10 % difference. - Doesn't seem correct
( E ) - This also cannot be inferred.
answered Mar 29, 2015 by Senior Associate (452 points)
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Jyotsna Mehta