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  3. Sparrow Airlines is planning to reduce its costs by cleaning its planes’ engines

Sparrow Airlines is planning to reduce its costs by cleaning its planes’ engines

游客2024-01-12  51
问题 Sparrow Airlines is planning to reduce its costs by cleaning its planes’ engines once a month, rather than the industry standard of every six months. With cleaner engines, Sparrow can postpone engine overhauls, which take planes out of service for up to 18 months. Furthermore, cleaning an engine reduces its fuel consumption by roughly 1.2 percent.
The airline’s plan assumes that
选项 A、fuel prices are likely to rise in the near future and therefore cutting fuel consumption is an important goal
B、the cost of monthly cleaning of an airplane’s engines is not significantly greater in the long run than is the cost of an engine overhaul
C、engine cleaning does not remove an airplane from service
D、Sparrow Airlines has had greater problems with engine overhauls and fuel consumption than other airlines have
E、cleaning engines once a month will give Sparrow Airlines a competitive advantage over other airlines
答案 B
解析 Evaluation of a Plan
Situation Sparrow Airlines plans to clean the engines of its planes monthly rather than every six months. The goal is to reduce its costs.
Reasoning Which statement provides an assumption underlying the plan? The plan will enable Sparrow to postpone engine overhauls, which put a plane out of service for up to 18 months. The monthly cleaning will reduce its fuel consumption by 1.2 percent. But suppose the long-run cost of monthly cleanings were greater than the cost of an engine overhaul, then the rationale for the airline’s plan would fail.
A Nothing in the information provided indicates that this is assumed in the plan.
B Correct. The plan makes sense only if this is assumed. If the long-run total cost of monthly cleaning significantly exceeded the total cost of engine overhaul—which would include, in the long run, more frequent downtime of 18 months if the plan were not adopted—then it seems likely that the projected benefit of postponement of engine overhauls would not be compensated for by the 1.2 percent fuel-cost savings.
C The plan does not have to assume this. Perhaps monthly engine cleaning requires only one day of down time.
D This is perhaps a good reason for Sparrow to put in place the proposed cost-saving plan, but it is not an assumption that the plan requires for it to make sense.
E The plan does not have to assume this, even if Sparrow’s cost saving were to result in a competitive advantage. Sparrow s plan could equally be aimed at simply removing a competitive disadvantage. The issue of competition is not addressed in the given information.
The correct answer is B.
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