Examkin

Question

Difficulty: EasyEvaluating Argument Support and Weakening Across Tabs

Tab 1: Executive Summary Memo
Apex Logistics management claims that replacing 40% of its delivery fleet with electric vehicles (EVs) in 2025 was the direct cause of the overall reduction in annual fleet operating expenses. The memo asserts: "Because electric vehicles incur substantially lower energy costs per mile and require minimal routine maintenance, transitioning 40% of our fleet to EVs produced our operational cost savings for 2025."

Tab 2: Fleet Operating Metrics
Metric2024 (100% Diesel)2025 (60% Diesel, 40% EV)
Total Miles Driven1,000,0001,000,000
Average Diesel Price per Gallon$4.50$3.00
Total Routine Maintenance Costs$300,000$295,000
Total Fleet Fuel & Energy Expenditures$900,000$725,000

Based on the information integrated across Tab 1 and Tab 2, which of the following statements, if true, most seriously weakens management's argument that EV adoption was the primary cause of the reduction in total fleet operating expenses in 2025?

  1. The 33% decline in market diesel fuel prices from 4.50to4.50 to 3.00 per gallon accounted for fuel savings on the remaining diesel vehicles that exceeded the total net reduction in fleet expenditures.Answer
  2. B
    Total routine maintenance expenses decreased by only $5,000 between 2024 and 2025 across the entire delivery fleet.
  3. C
    Electric vehicle electricity rates during peak daytime delivery hours were 15% higher than off-peak overnight rates.
  4. D
    Apex Logistics did not claim federal tax credits offered to commercial fleets that transition to zero-emission vehicles in 2025.
  5. E
    Electric vehicles accounted for exactly 400,000 of the 1,000,000 total miles driven by the fleet in 2025.

Answer

The statement showing that the 33% decline in market diesel fuel prices from 4.50to4.50 to 3.00 per gallon accounted for fuel savings on the remaining diesel vehicles that exceeded the total net reduction in fleet expenditures.
The correct answer demonstrates that an external macroeconomic factor—the 33% reduction in diesel fuel prices from 4.50to4.50 to 3.00 per gallon—accounts for the savings on the remaining diesel vehicles. This provides a strong alternative explanation for the drop in total expenditure, thereby directly weakening management's claim that EV adoption caused the cost savings.

Step-by-Step Solution

1
Identify the core argument in Tab 1
Management claims that converting 40% of the fleet to EVs directly caused the total fleet operating expense reduction in 2025 due to EV efficiency and low maintenance.
To weaken a causal claim, we must find an alternative explanation or evidence that the stated cause did not produce the observed effect.
2
Analyze quantitative changes in Tab 2 across the two years
Maintenance barely changed (300kto300k to 295k), while fuel/energy dropped from 900kto900k to 725k (a 175kdrop).Dieselpricepergallondroppedsignificantlyfrom175k drop). Diesel price per gallon dropped significantly from 4.50 to $3.00.
Comparing metrics reveals where the actual dollar savings originated.
3
Evaluate the impact of external diesel price drops on the total savings
The 600,000 diesel miles driven in 2025 benefited from a $1.50 per gallon price drop. This macro price reduction explains the fuel savings regardless of EV implementation.
Showing that an external factor (diesel market price collapse) caused the savings severely weakens the claim that EV adoption was the cause.

Key Concept

Evaluating Argument Support and Weakening Across Tabs
Estimated Time:1m 30s
Rate this question

Topics

Evaluating Argument Support and Weakening Across Tabs

More questions from this topic