Analysis of Argument Questions for the GMAT The following appeared as part of an annual report sent to stockholders by Olympic Foods, a processor of frozen foods. ìOver time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in 1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can expect that our long experience will enable us to minimize costs and thus maximize profits.î Discuss how well reasoned you find this argument. In your discussion be sure to analyze the line of reasoning and the use of evidence in the argument. For example, you may need to consider what questionable assumptions underlie the thinking and what alternative explanations or counterexamples might weaken the conclusion. You can also discuss what sort of evidence would strengthen or refute the argument, what changes in the argument would make it more logically sound, and what, if anything, would help you better evaluate its conclusion. The following appeared in a memorandum from the business department of the Apogee Company. ìWhen the Apogee Company had all its operations in one location, it was more profitable than it is today. Therefore, the Apogee Company should close down its field offices and conduct all its operations from a single location. Such centralization would improve profitability by cutting costs and helping the company maintain better supervision of all employees.î Discuss how well reasoned . . . etc. The following appeared in a memorandum issued by a large cityís council on the arts. ìIn a recent citywide poll, fifteen percent more residents said that they watch television programs about the visual arts than was the case in a poll conducted five years ago. During these past five years, the number of people visiting our cityís art museums has increased by a similar percentage. Since the corporate funding that supports public television, where most of the visual arts programs appear, is now being threatened with severe cuts, we can expect that attendance at our cityís art museums will also start to decrease. Thus some of the cityís funds for supporting the arts should be reallocated to public television.î Discuss how well reasoned . . . etc. The following appeared in a report presented for discussion at a meeting of the directors of a company that manufactures parts for heavy machinery. ìThe falling revenues that the company is experiencing coincide with delays in manufacturing. These delays, in turn, are due in large part to poor planning in purchasing metals. Consider further that the manager of the department that handles purchasing of raw materials has an excellent background in general business, psychology, and sociology, but knows little about the properties of metals. The company should, therefore, move the purchasing manager to the sales department and bring in a scientist from the research division to be manager of the purchasing department.î Discuss how well reasoned . . . etc. The following appeared in an announcement issued by the publisher of The Mercury, a weekly newspaper. ìSince a competing lower-priced newspaper, The Bugle, was started five years ago, The Mercuryís circulation has declined by 10,000 readers. The best way to get more people to read The Mercury is to reduce its price below that of The Bugle, at least until circulation increases to former levels. The increased circulation of The Mercury will attract more businesses to buy advertising space in the paper.î Discuss how well reasoned . . . etc. The following appeared as part of an article in a magazine devoted to regional life. ìCorporations should look to the city of Helios when seeking new business opportunities or a new location. Even in the recent recession, Heliosís u

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