Numerical Reasoning Test 2

Solution Booklet

1
Q1 Which of the products shown had the lowest value of sales per non-European store
and which had the highest value of sales per European store?

(A) PU10 (non-European); AE25 (European)

(B) FD24 (non-European); DE45 (European)
(C) FD24 (non-European); AE25 (European)
(D) AE25 (non-European); PU10 (European)
(E) AE25 (non-European); FD24 (European)

Step 1 – calculate each product’s average sales per European store

DE45 = 21,000/26 = 808
PU20 = 30,000/19 = 1,579
AE25 = 24,500/11 = 2,227
PU10 = 18,700/9 = 2,078
FD24 = 14,700/13 = 1,131

Step 2 – calculate each product’s average sales per non-European store

DE45 = 35,000/14 = 2,500
PU20 = 20,000/9 = 2,222
AE25 = 13,000/6 = 2,167
PU10 = 24,000/5 = 4,800
FD24 = 9,000/7 = 1,286

Thus the correct answer is (C), FD24 (non-European); AE25 (European)

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Q2 What is the discrepancy (in $) between the AE25 price per product unit in non -European
stores compared to European stores. Use an exchange rate of 0.80 to the $.

(A) $30
(B) $120
(C) $130
(D) $200
(E) $230

The information that you need is shown in both tables. Note from the possible answers it
doesn’t matter which is the greater, we just need the difference.

Tip: if you struggle with the term “ x to the $” and you sometimes multiply when you
should divide by the conversion, think of an extreme example. So think of a two
currencies that have very different strengths, for example Zimbabwean Dollar to the
British Pound. It doesn’t matter what the values are but you know there are lots of
ZWDs to the BGP and you also know that the same product will cost a lot more ZWDs
than GBP. Hopefully that will help you decide if currency A should be a higher number
than currency B, or vise versa.

Step 1 – read from the table the AE25 price per product unit (non-European
stores) = $130

Step 2 – Calculate the AE25 price per product unit (European stores)
= 200 ¸ 0.80 = $250

Step 3 – calculate the difference between the

two $250 - $130 = $120

Thus the correct answer is (B), $120

Q3 This month’s combined target for non-European and European sales of AE25 is 40,000.
Using an exchange rate of 0.75 to the $, what is the difference between the sales values
shown and this target?

(A) 575
(B) 750
(C) 5,100
(D) 5,750
(E) 7,500

The information that you need is shown in both tables

Step 1 – calculate AE25’s non-European sales in Euros

$13,000 x 0.75 = 9,750

Step 2 – calculate AE25’s combined European and non-European sales

9,750 + 24,500 = 34,250

Step 3 – calculate the discrepancy against target sales

40,000 - 34,250 = 5,750

Thus the correct answer is (D), 5,750

3
Q4 Given that a customer uses the promotional offers shown, put the 5 products sold in non-
European stores into order of increasing promotional price per unit (starting with the
cheapest).

(A) AE25, PU10, DE45, FD24, PU20

(B) PU10, DE45, PU20, AE25, FD24
(C) PU10, DE45, AE25, PU20, FD24
(D) DE45, PU10, PU20, AE25, FD24
(E) PU10, DE45, PU20, FD24, AE25

The information that we need is shown in the first table (non-European stores)

Step 1 – calculate the 3 for the price of 2 promotional offers

DE45 promotional price per unit = 2/3 x $175 = $116.67
PU20 promotional price per unit = 2/3 x $200 = $133.33

Step 2 – calculate the 4 for the price of 3 promotional offers

PU10 promotional price per unit = 3/4 x $150 = $112.50
FD24 promotional price per unit = 3/4 x $180 = $135.00

Step 3 – put these promotional prices into order alongside the fifth product (AE25)
priced at $130 and not on promotion

Thus the correct answer is (C), PU10, DE45, AE25, PU20, FD24

4
Q5 On the previous day, the value of the shares held in the Emerging Markets Fund was 0.5%
lower than the values given here. What was the previous day’s value of shares in the
Emerging Markets Fund?

(A) £18.35 million

(B) £18.40 million
(C) £18.50 million
(D) £19.35 million
(E) £19.40 million

The information that we need is shown in both the graph and the table.

Step 1 - Calculate the value of the shares component of the Emerging Markets Fund

38.9 million x 50% = £19.45 million

Step 2 – Calculate the previous day’s

value £19.45 million x .995 = £19.35 million

Thus the correct answer is (D), £19.35 million

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Q6 Which out of the Emerging Markets, UK and Far Eastern funds hold the lowest value
of Cash and the lowest value of Bonds?

(A) UK (Cash); Far Eastern (Bonds)

(B) Emerging Markets (Cash); Far Eastern (Bonds)
(C) Far Eastern (Cash); UK (Bonds)
(D) Emerging Markets (Cash); UK (Bonds)
(E) UK (Cash); Far Eastern (Cash)

The information that we need is shown in both the table and the graph.

Step 1 - Calculate the value of the Cash held within each of the Funds in the question
Cash value = total value x cash %
UK (Cash) = 55.6 x 10% = £5.56 million

See table below:

Cash
UK £5.56 million
Far Eastern £7.86 million
Emerging
Markets £3.89 million

Step 2 - Calculate the value of the Bonds held within each of the Funds in the
question Bonds value = total value x bonds %
UK (Bonds) = 55.6 x 20% = £11.12 million

See table below:

Bond
UK £11.12 million
Far Eastern £3.41 million
Emerging
Markets £11.67 million

Thus the correct answer is (B), Emerging Markets (Cash); Far Eastern (Bonds)

6
Q7 Which of the components of the UK and US equity funds have the highest and the
lowest value?

(A) lowest is US Fund (Bonds); highest is UK Fund (Derivatives)

(B) lowest is US Fund (Shares); highest is UK Fund (Shares)

(C) lowest is UK Fund (Bonds); highest is US Fund (Shares)

(D) lowest is US Fund (Bonds); highest is UK Fund (Shares)

(E) lowest is US Fund (Derivatives); highest is UK Fund (Shares)

Tip: Note that just from looking at the graph and table we know the overall US fund is

smaller than the UK fund and the smallest fraction within the US find (10% to

Derivatives) is not larger than the smallest fraction within the UK fund. So we can

instantly say the smallest fraction is Derivatives in the US fund. As it happens there is

only one multiple choice with this as an option so we know (E) is the correct answer.

In full, the solution is as follows. The information that we need is shown in both the
graph and the table.

Calculate the value of each component of each equity fund, using this

formula: Component value = Total value x Equity fund component %

UK Fund (Cash) = 55.6 x 10% = 5.56 (£million)

See table below for other component values:

Component value (£million)

Cash Bonds Derivatives Shares
UK 5.56 11.12 16.68 22.24
US 4.86 3.65 2.43 13.37

Thus the correct answer is (E), lowest is US Fund (Derivatives); highest is UK Fund
(Shares)

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Q8 Which equity fund holding(s) hold less than double the number of Shares compared
to Bonds?

(A) UK
(B) US
(C) Emerging Markets
(D) UK, US
(E) UK, US, Emerging Markets

The information that we need is shown in the graph.

Calculate the Shares: Bonds ratios for each equity fund

Bonds Shares
UK 20 40
US 15 55
European 7 70
Far Eastern 13 30
Emerging Markets 30 50

The UK fund has exactly double the number of Shares compared to Bonds. Only the
Emerging Markets has less than double the number of Shares compared to Bonds.

Thus the correct answer is (C) Emerging Markets

8
Q9 Averaged across the Manufacturing Plants, put the average values for each of
the maintenance costs in decreasing size order, starting with the highest.

(A) Servicing, Administration, Misc., Rent, Insurance, Utilities

(B) Servicing, Administration, Rent, Misc., Utilities, Insurance
(C) Servicing, Administration, Rent, Misc., Insurance, Utilities
(D) Servicing, Administration, Misc., Rent, Utilities, Insurance
(E) None of these

Calculate the average for each maintenance cost:

Insurance = 192.2
Servicing = 1,000
Rent = 295
Utilities = 185.8
Administration = 589
Misc = 450

Thus the correct answer is (A), Servicing, Administration, Misc., Rent, Insurance,
Utilities

9
Q10 For the Glasgow manufacturing plant, which maintenance cost(s) represent
approximately 7% of the total costs?

(A) Rent and Utilities

(B) Rent
(C) Utilities
(D) Insurance
(E) Insurance and Utilities

Step 1 - For the Glasgow plant, calculate the total costs

195 + 875 + 300 + 189 + 720 + 425 = 2,704

Step 2 - For the Glasgow plant, calculate each cost as a % of the total cost

Insurance = 100% x 195/2,704 = 7%

Servicing = 100% x 875/2,704 = 32%

Rent = 100% x 300/2,704 = 11%

Utilities = 100% x 189/2,704 = 7%

Administration = 100% x 720/2,704 =

27% Misc = 100% x 425/2,704 = 16%

Tip: to save time, you can stop after you’ve calculated 7% for Insurance and just scan
across the row to see if any other costs are close to £195. You will see that Utilities are.

Thus the correct answer is (E), Insurance and Utilities

10
Q11 What is the average annual cost for servicing each of the 5 manufacturing plants
(assume 4 weeks in a month)?

(A) £3,300
(B) £12,400
(C) £16,500
(D) £39,600
(E) £48,000

Step 1 – total the servicing costs

1,050 + 1,100 + 950 + 1,025 + 875 = £5,000 per week

Step 2 – calculate the monthly cost

5,000 x 4 = £20,000 per month

Step 3 – calculate the average monthly

cost £20,000 / 5 = £4,000 per month

Step 4 – calculate the average annual cost

4,000 x 12 = £48,000

Thus the correct answer is (E), £48,000

Q12 Which two manufacturing plants have the same total maintenance costs per week?

(A) Midlands and Glasgow

(B) Bordeaux and Glasgow
(C) Bordeaux and Amsterdam
(D) Midlands and Amsterdam
(E) None of these

Calculate the total weekly maintenance costs for each production plant
Midlands = 196 + 1,050 + 300 + 95 + 650 + 525 = 2,816
Bordeaux = 204 + 1,100 + 250 + 236 + 600 + 400 = 2,790
Berlin = 212 + 950 + 275 + 164 + 450 + 400 =2,451
Amsterdam = 154 + 1,025 + 350 + 245 + 525 + 500 = 2,799
Glasgow = 195 + 875 + 300 + 189 + 720 + 425 = 2,704

Thus the correct answer is (E), None of these

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Q13 Which garden furniture manufacturer has 22.5% of the UK market in terms of
2010 annual sales?

(A) Manufacturer A
(B) Manufacturer B
(C) Manufacturer C
(D) Manufacturer D
(E) Manufacturer E

The information that you need is shown in the pie-chart.

Step 1 – Calculate the total annual sales for all furniture manufacturers
1.2 + 3.3 + 2.4 + 2.7 + 2.4 = £12 million

Step 2 – Next, the quickest way to complete this question is to calculate 22.5% of the
12 million and see which manufacturer has this sales value. So 22.5% of 12 is 2.7. We
immediately see that Manufacturer D has sales of 2.7 (ignoring any units).

Alternatively, the slower way would be to calculate the % of the UK market held by
each furniture manufacturer:

Manufacturer A = 1.2/12 x 100% = 10%

Manufacturer B = 3.3/12 x 100% = 27.5%
Manufacturer C = 2.4/12 x 100% = 20%
Manufacturer D = 2.7/12 x 100% = 22.5%
Manufacturer E = 2.4/12 x 100% = 20%

Thus the correct answer is (D), Manufacturer D

12
Q14 Manufacturers B and D each aim to increase their annual sales from 2010 to 2011 by
a quarter. Manufacturers A, C and E each aim to grow their annual sales by a fifth.
Assuming all companies meet these targets, what will be 2011’s total furniture
manufacturer sales (to the nearest £million)?

(A) £13 million

(B) £14 million
(C) £15 million
(D) £16 million
(E) £17 million

The information that you need is shown in the pie-chart.

Step 1 - Calculate the 2011 targets for each garden furniture manufacturer

Manufacturer A: 1.2 x 1.2 = 1.44

Manufacturer B: 3.3 x 1.25 = 4.125
Manufacturer C: 2.4 x 1.2 = 2.88
Manufacturer D: 2.7 x 1.25 = 3.375
Manufacturer E: 2.4 x 1.2 = 2.88

Step 2 – Calculate the total 2011 target for all garden furniture manufacturers
1.44 + 4.125 + 2.88 + 3.375 + 2.88 = 14.7

Step 3 – to the nearest £million = £15 million

Note: in this question we were lucky that £14.7 million was not an available answer.
Sometimes questions deliberately include the answer not rounded as required, to catch
you out.

Thus the correct answer is (C), £15 million

13
Q15 What is the percentage increase in Company C’s total sales for 2010 compared its
2009 total sales?

(A) 0.83%

(B) 0.84%

(C) 0.85%

(D) 0.86%

(E) 0.87%

The information that you need is shown in the table.

Step 1 – calculate 2009’s total sales

312,500 + 396,700 + 546,300 + 595,500 + 529,000

= 2,380,000 Step 2 – calculate 2010’s total sales

278,500 + 470,400 + 502,000 + 643,100 + 506,000

= 2,400,000 Step 3 – calculate the % difference

2,400,000 / 2,380,000 = 1.0084 which is a 0.84% increase.

Thus the correct answer is (B), 0.84%

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Q16 If Company C’s sales in 2009 were in the ratio of 8:7 for online: offline sales, what were
the offline sales (to the nearest £1,000)?

(A) £110,000
(B) £1,000,000
(C) £1,100,000
(D) £1,110,000
(E) £1,111,000

Step 1 – use Manufacturer C’s 2009 total sales figure from the previous
question i.e. 2,380,000 (312,500 + 396,700 + 546,300 + 595,500 + 529,000)

Step 2 – put this figure into the question’s ratio

Online sales + offline sales = 2,380,000
Offline sales = (2,380,000 x 7)/ (7+8) = 1,110,667

Step 3 - to the nearest £1,000 = 1,111,000

Thus the correct answer is (E), £1,111,000

15
Q17 Assume that the percentage change trends between the Current Year and Next Year
continue at the same rate for a subsequent year. What’s the subsequent year’s
average entry level graduate salary across the 5 sectors (to the nearest £500)?

(A) £28,000
(B) £28,500
(C) £29,000
(D) £29,500
(E) Can’t tell from data

It might be tempting to do the following calculation, however since we don’t know how
many graduates there are in each sector we cannot calculate the average salary. For
example if Engineering has 1,000 graduates and Research has 10, it is not true to add
up the totals and divide by the number of sectors (five).

Thus we cannot tell from the data.

Don’t be tempted to do this:

Step 1 – Calculate the subsequent year’s entry level graduate salary for
each sector
Step 2 – Calculate the average
Step 3 – to the nearest £500 = £28,500

16
Q18 In Year 3 a company paid the average entry graduate starting salaries when recruiting 15
graduates for a consultancy role and 6 graduates for a research role. What was the
average salary per recruited graduate?

(A) £26,000
(B) £26,114
(C) £26,429
(D) £26,500
(E) £27,000

Step 1 – total the salaries for 15 graduates

(consultancy) 15 x 27,000 = 405,000

Step 2 – total the salaries for 6 graduates (research)

6 x 23,500 = 141,000

Step 3 – calculate the average salary per graduate

(405,000 + 141,000)/21 = £26,000

Thus the correct answer is (A), £26,000

Q19 Which sector has seen the smallest percentage increase in graduate entry level salary
between Year 2 and the Current Year?

(A) Engineering
(B) Research
(C) Consulting
(D) Legal
(E) Accounting

Calculate the % increase for each sector

Engineering: (24.5 – 23.7)/23.7 = 3.4%

Research: (24.2 – 23.5)/23.5 = 3.0%
Consulting: (28.3 – 27.6)/27.6 = 2.5%
Legal: (33.2 – 29.8)/29.8 = 11.4%
Accounting: (27.3 – 26.6)/26.6 = 2.6%

Thus the correct answer is (C), Consulting

17
Q20 The current year’s entry level graduate salaries for working in logistics and retail are
£25,000 and £24,000 respectively. If these sectors experience the same percentage
change as the legal sector over the same period, what’s next year’s predicted entry
level graduate salary in the logistics and retail sectors (to the nearest £100)?

(A) £24,800 (logistics); £25,800 (retail)

(B) £25,100 (logistics); £25,300 (retail)
(C) £25,500 (logistics); £25,000 (retail)
(D) £25,800 (logistics); £24,800 (retail)
(E) Can’t tell from data

Step 1 – calculate the % increase in legal sector salaries between the current year and
next year
100% x (34.3 – 33.2)/33.2 = 3.31%

Step 2 – apply this % increase to the entry level graduate salaries

(logistics) 103.31% x £25,000 = £25,828

Step 3 – apply this % increase to the entry level graduate salaries

(retail) 103.31% x £24,000 = £24,794

Thus the correct answer is (D), £25,800 (logistics); £24,800 (retail)

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