*C R - Air Filters

[supshalu]

A company that manufactures heavy industrial equipment employs dozens of people in jobs that are considered quite hazardous. The company obeys federal regulations governing workplace safety, and, to comply with new regulations instituted to avoid recently discovered risks from airborne particulate matter, company engineers were required to install extremely expensive air filtering equipment. However, despite the expense of the air filtering equipment, the company's operating costs for the quarter were considerably lower than normal.

Which of the following, if true, most helps to resolve the apparent paradox?

a. Over half the company's expenditures to maintain worker safety go to pay for protective garments; yet only a small percentage of such expenditures go to pay for nose and mouth filters.

b Prior to the installation of the air filtering equipment, the company had had to prevent damage due to particulate contamination of manufacturing equipment.
c. The company's costs of labor, which make up a large fraction of operating costs, increased during the same period.
d. When the air filtering equipment was installed in the manufacturing facility, the company took the opportunity to upgrade the temperature control equipment.
e. The majority of the company's employees work in the areas of the plant in which the air filtering equipment was installed.


Answer is B., but I fail to gather how ?

[sunny.jain]

They are saying "Even after installing the expensive filter, their OPERATING cost has gone down."

OPERATING COST = Material Cost + wages + Electricity, water etc Bill + Cost of Losses during manufacturing + Cost of some new things introduced like Filter.

Here, Ideally OC should increase, but they are saying it decrease. So one of the other factor of Operating Cost should have gone down.

Only B support this. So is the answer.

[RonPurewal]

Please cite the source (author) of this problem. We cannot reply unless a source is cited (and, if no source is cited, we will have to delete the post!). Thanks.