medium · GMAT Verbal
A textile manufacturer introduced a new production line using recycled synthetic fibers instead of virgin material for one of its fabric lines. Production costs for that fabric line fell by 13 percent compared with the previous year, when only virgin material was used. Company management concluded that switching to recycled fiber caused the reduction in production costs.
Which of the following, if true, would most strengthen management's conclusion?
- The recycled synthetic fiber costs substantially less per unit than virgin fiber of comparable quality, and the same production equipment and process were used for both.
- The company marketed the fabric line as environmentally friendly.
- Demand for the fabric line grew during the same year.
- The company's overall revenue grew during the same year.
- The company's competitors also began using recycled fiber during the same year, matching the price drop across the broader recycled-fiber market and narrowing the cost gap with virgin fiber industry-wide.
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