Multiple choice

Directions: For this question, select the best of the answer choices given.

The CEO of Black's International has proposed replacing their Marmacil semiconductor manufacturing equipment with Fasttech equipment since it costs 30 percent less to train new staff on the Fasttech equipment. Those opposed to the change have pointed out the savings in training cost does not justify the change. Instead, they suggested that the company hire only people who already know how to use the Marmacil equipment. Which of the following, if true, most seriously undermines the objection to the replacement of Marmacil semiconductor manufacturing equipment with Fasttechs?

  1. Currently all employees in the company are required to attend workshops on how to use Marmacil semiconductor manufacturing equipment in new applications.

  2. Once employees learn how to use semiconductor-manufacturing equipment, they tend to change employers more readily than before.

  3. Experienced users of Marmacil equipment command much higher salaries than do prospective employees who have no experience in the use of such equipment.

  4. The average productivity of employees in the general manager's company is below the average productivity of the employees of its competitors.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The best answer is (3). Those objecting to the change claim that the advantage of Fasttech's relatively low cost can be mitigated by hiring experience users of Marmacil semiconductor manufacturing equipment. However, if such people command much higher salaries as choice (3) states, doing so would not result in savings to the company.

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