Numerical Reasoning

Test 9

Solutions Booklet

Instructions

This practice test contains 30 questions, and you will have 30 minutes to answer
them.

Each question will have four possible answers, one of which is correct.

Calculators are permitted for this test. It’s recommended to have some rough paper
for your calculations. You will have to work quickly and accurately to perform well in
this test. If you don’t know the answer to a question, leave it and come back to it if
you have time.

Try to find a time and place where you will not be interrupted during the test. When
you are ready, turn to the next page and begin.
 Q1 If Howards and Makepeace’s annual sales target for Brand B
was £690,000, what fraction of this were actual Brand B sales?

(A) 1/3
(B) 22/70
(C) 3/5
(D) 2/5
The information that we need is shown in the graph Clothing brand sales.

Answer:

Step 1: Calculate the total annual Brand b sales by adding the 4 quarters
65 + 60 + 78 + 73 = 276
Step 2: Calculate the fraction compared to the annual sales target
276 / 690 = 2/5
Thus the correct answer is (D) 2/5

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 Q2 What are the average sales per quarter for each brand (in the
order Brand C; B; A)?
(A) 70,500; 69,000; 61,250
(B) 7,050; 6,900; 6,125
(C) 61,250; 69,000; 70,500
(D) 61; 71; 69
The information that we need is shown in the graph Clothing brand sales.

Answer:

Step 1: Calculate the total clothing sales, as follows;

Brand a = 59 + 58 + 75 + 53 = 245
Brand b = 65 + 60 + 78 + 73 = 276
Brand c = 74 + 72 + 70 + 66 = 282
Step 2: Calculate the average sales per quarter, as follows;
Brand a (245 / 4) = 61.25 i.e. 61,250
Brand b (276 / 4) = 69 i.e. 69,000
Brand c (282 / 4) = 70.5 i.e. 70,500
Thus the correct answer is (A) 70,500, 69,000, 61,250

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 Q3 What was Brand A’s total sales turnover for the first and second
month in Quarter 4?
(A) £30,000
(B) £28,000
(C) £25,000
(D) £23,000
The information that we need is shown in the table Previous month’s sales turnover
and profit and the graph Clothing brand sales.

Answer:

Step 1: From the table Previous month’s sales turnover and profit …
…Previous month’s sales turnover = 23,000
Step 2: From the graph Clothing brand sales, obtain the quarter’s sales for Brand a
(53000)
Step 3 – Calculate the difference
53,000 – 23,000 = 30,000
Thus the correct answer is (A) £30,000

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 Q4 If the variable costs had been 5% higher for the previous month
then what would have been the impact on Brand A’s profit?

(A) £165 increase

(B) £275 decrease
(C) £275 increase
(D) No effect on profit
The information that we need is shown in Previous month’s sales turnover and profit.
We are told this table gives data for the previous month, which is Quarter 4, month 3.

Answer:

Step 1: Calculate the 5% increase in variable costs for the previous month.
5,500 x 5/100 = £275
Step 2: As shown in the table Previous month’s sales turnover and profit as the
variable costs increase so profit decreases by the same amount.
Thus the correct answer is (B) £275 decrease

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 Q5 The sales tax was calculated incorrectly for Quarter 4 Month 3
and should have been 16.5%. The mistake caused the Net
Turnover for Brand A to be reported as being what?

(A) £575 too high

(B) £1650 too low
(C) 16.5% too high
(D) £575 too low
The information that we need is shown in the Table; Previous month’s sales turnover
and profit.

Answer:

Step 1: Calculate the difference in sales tax.

16.5 – 14 = 2.5%
Step 2: Calculate the difference in tax due.
23000 x 2.5/100 = £575
Step 3 - The Sales tax is actually higher so the mistake would have made the Net
Turnover appear higher than in truth.
Thus the correct answer is (A) £575 too high.

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 Q6 Which operation achieved the highest sales per Sales and
Support staff?

(A) Telephone (CF plc)

(B) Catalogue (CF plc)
(C) High Street (CF plc)
(D) Telephone (Callz Ltd)
The information that we need is shown in the monthly sales figure tables for CF plc
and Callz Ltd.

Answer:

Step 1: It would take a long time to work out the average sales achieved for each
operation across CF plc and Callz Ltd. If you focus on the sales and support staff
numbers (compared to the monthly sales achieved) it becomes clear that the highest
sales per Sales and Support staff will be either Telephone (Callz Ltd) or Telephone
(CF plc). Then, since there is only one sales/support staff member at Callz Ltd
(55,400 / 1 = 55,400) this must be higher than CF’s (64,000 / 2 = 32,000)
Thus the correct answer is (D) Telephone (Callz Ltd)

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 Q7 Callz Ltd plans to reduce its staff headcount by two. The
remaining staff will be split across an online team and an offline
team to a ratio of 1:2. If the online group sales target is
£180,000, what is the average target per member of the online
team?

(A) £50,000
(B) £60,000
(C) £40,000
(D) £35,000
The information that we need is shown in the Callz Ltd table.

Answer:

Step 1: A simple equation needs to be solved to determine the size of the online
team = X
X + 2X = 11 (current headcount) – 2 (reduction in headcount) = 9
3X = 9, so X = 3 i.e. 3 staff members in the online team.
Step 2: Calculate the new sales target per member of the online team
180,000 ÷ 3 = £60,000
Thus the correct answer is (B) £60,000

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 Q8 Across both companies, which retail operation had the lowest
absolute difference between monthly sales and sales target?

(A) Internet (Callz Ltd)

(B) Catalogue (CF plc)
(C) High Street (Callz Ltd)
(D) Catalogue (Callz Ltd)
The information that we need is shown in both tables.

Answer:

Step 1: The calculation for each company is shown in the tables below (with the
answer marked in bold):
Callz
High Street 38200 – 35000 = 3200
Internet 42500 – 40000 = 2500
Catalogue 43800 – 45000 = -1200
Telephone 55400 – 60000 = -4600
CF PLC
High Street 38200 – 40000 = -1800
Internet 42000 – 45000 = -3000
Catalogue 47800 – 50000 = -2200
Telephone 64000 – 60000 = 4000
Thus the correct answer is (D) Catalogue (Callz)

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 Q9 What is the ratio of CF plc’s actual monthly telephone sales to
overall monthly CF plc sales?

(A) 1:3
(B) 1:30
(C) 1:4
(D) 1:5
The information that we need is shown in the CF plc table.

Answer:

Step 1: Calculate total sales = 192,000

Step 2: Calculate telephone sales as a ratio to total sales
64000:192000 = 1:3
Thus the correct answer is (A) 1:3

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 Q10 Following a merger, the four retail operations are combined with
each other across Callz Ltd and CF plc. The targets are also
combined for each retail operation, with 5% added to each
target for each staff member that works in the combined retail
operation. Which combined retail operation has a sales target of
£119,000?

(A) High Street

(B) Internet
(C) Catalogue
(D) Cannot say
The information that we need is shown in both tables.

Answer:

Step 1: Calculate the combined sales target per retail operation across the two
stores, as follows:
High Street = 75,000
Internet = 85,000
Catalogue = 95,000
Telephone = 120,000

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 Step 2: Calculate the increased sales target based upon the combined number of
employees (5% increase for each employee).
Retail operation Combined no. Employees Increased sales target
High Street 9 75,000 x 145% =
£108,750
Internet 8 85,000 x 140% =
£119,000
Catalogue 4 95,000 x 120% =
£114,000
Telephone 3 120,000 x 115% =
£138,00
Thus the correct answer is (B) Internet

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 Q11 The US operations exceeded their sales target for 2009 by
25%. If the target was split equally across 4 American regions,
what was the individual sales target for each region?

(A) None of these

(B) £1.03 million
(C) £0.58 million
(D) £0.15 million
The information that we need is shown in the bar chart Tamcer Inc.

Answer:

Step 1: US sales = 51.5 (£100,000)

Ignore the £100,000 during the calculation.
Step 2: 51.5 / 4 = 12.875 per American region.
Step 3 - 12.875 represents 125%
Individual regional target = 100 x 12.875 / 125 = 10.3
Step 4 - 10.3 (£100,000) = £1.03 million
Thus the correct answer is (B) £1.03 million

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 Q12 In 2009, which categories of electrical goods each sold more
than £0.75 million in the UK?

(A) Misc
(B) Misc, Computers and DVD players
(C) Misc and DVD players
(D) Computers and DVD players
The information that we need is shown in the graph and pie chart.

Answer:

Step 1: The Tamcer Inc – Sales 2009 graph gives the total UK sales = £2.91 million
Step 2: The UK sales of electrical goods pie chart gives the % sales breakdown for
each type of electrical good. Calculate the actual sales for each type of electrical
good, as follows:
Computers (25%) = 0.73 million
DVD players (29%) = 0.84 million
Cameras (12%) = 0.35 million
Misc (26%) = 0.76 million
Games (8%) = 0.23 million
Thus the correct answer is (C) Misc and DVD players

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 Q13 Tamcer Inc’s Russian business is split into 2 regions: Eastern
Region and Western Region. Eastern Region’s sales were the
equivalent of 300% of the Western Region’s sales. What were
the Eastern Region’s sales?

(A) £275,000
(B) £1,275,000
(C) £825,000
(D) None of these
The information that we need is shown in the graph Tamcer Inc.

Answer:

Step 1: Russian sales = 11 (£100,000) = £1,100,000

Step 2: Eastern Region sales + Western Region sales = £1,100,000 = 300% + 100%
1% = £1,100,000 / 400 = £2750
Step 3 - Eastern Region’s sales = 300% = £2750 x 300 = £825,000
Thus the correct answer is (C) £825,000

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 Q14 If the absolute level of computers, games and cameras sold in
France mirrors that of the UK, what is the total value of DVD
players and Misc electrical goods sold in Tamcer’s French
operations?
(A) £2,280,500
(B) £1,309,500
(C) £1,909,500
(D) Can’t tell from the data
The information that we need is shown in the graph and pie-chart.

Answer:

Step 1: Calculate the French sales of computers, games and cameras (using UK
figures).
Computers = £727,500
Cameras = £349,200
Games = £232,800
TOTAL = £1,309,500
Step 2: Calculate the difference between this figure and total electrical goods sold in
France
£3,590,000 - £1,309,500 = £2,280,500
Thus the correct answer is (A) £2,280,500

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 Q15 The total worldwide sales for Tamcer Inc. are £29 million. What
level of sales is accounted for by countries other than those
shown?
(A) £19.6 million
(B) £9.6 million
(C) £10.6 million
(D) £9.4 million
The information that we need is shown in the graph Tamcer Inc.

Answer:

Step 1: Calculate the total sales shown:

UK 29.1
France 35.9
Germany 48.3
US 51.5
Spain 18.2
Russia 11
TOTAL = 194
Step 2: 194 (£100,000’s) = £19.4 million
Step 3 - £29 million - £19.4 million = £9.6 million.
Thus the correct answer is (B) £9.6 million

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 Q16 If instead of being introduced in full next year, the budget salary
increases are phased in over the next three years (at a rate of
2% per year), what will be the average United States Director’s
salary in 2 years time?
(A) £119,646
(B) £121,900
(C) £119,600
(D) £122,000
The information that we need is shown in the table Jackson and Simpson Co.
Director salaries.

Answer:

Step 1: Calculate increases in average Director salary over two years

Year 1 = £115,000 + 2% = 115,000 x 102% = £117,300
Year 2 = £117,300 + 2% = 117,300 x 102% = £119,646
Thus the correct answer is (A) £119,646

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 Q17 Next year the rise in budget for a Spanish Director's average
salary will be achieved through two consecutive pay-rises. If the
first pay-rise is an increase of 2%, what will the second
percentage increase have to be?
(A) 2.5%
(B) 2.6%
(C) 2.9%
(D) 3.0%
The information that we need is shown in the table Jackson and Simpson Co.
Director
Answer:

Step 1: Calculate the Spanish Director salary after the first increase of 2%
£84,000 x 1.02 = £85,680
Step 2: Calculate the budgeted salary for the end of next year (5% increase).
£84,000 x 105% = £88,200
Step 3 – Calculate the percentage increase required to get from 85,680 to 88,200.
88,200 ÷ 85,680 = 1.0294 i.e. an increase of 2.94%.
Thus the correct answer is (C) 2.9%

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 Q18 Directors and managers are allowed to purchase company
shares (price = £4.50) in place of salary next year. Which
country’s average Director can buy the most number of shares,
and which country has the most managers who can buy
shares?

(A) United States, United States

(B) United States, Germany
(C) Germany, United States
(D) Germany, Germany
The information that we need is shown in the table Jackson and Simpson Director
salaries.

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 Answer:

Step 1: The question is actually asking you to calculate which country’s Directors will
be paid the most next year. So calculate next year’s Director salaries for each
country.
UK = £92,000 + 4% = £95,680
France = £104,500 + 8% = £112,860
Germany = £118,000 + 6% = £125,080
United States = £115,000 + 6% = £121,900
Spain = £84,000 + 5% = £88,200
Step 2: Calculate the country that has the most managers who can buy shares
This is the country with the largest number of male and female managers
United States = 250 + 290 = 540
Thus the correct answer is (C) Germany, United States

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 Q19 Put the countries in order of decreasing numbers of managers.
(A) United States, Spain, Germany, France, United Kingdom
(B) Spain, United States, Germany, France, United Kingdom
(C) United States, Germany, Spain, United Kingdom, France
(D) United States, Germany, Spain, France, United Kingdom
The information that we need is shown in the two pie charts.

Answer:

Step 1: Calculate the total number of male and female managers working in each
country, as follows:
United Kingdom = 160 + 180 = 340
France = 175 + 210 = 385
Germany = 245 + 230 = 475
United States = 250 + 290 = 540
Spain = 225 + 240 = 465
Thus the correct answer is (D) United States, Germany, Spain, France, United
Kingdom

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 Q20 Which two countries have the same absolute difference in the
number of female and male managers?
(A) United Kingdom and United States
(B) Germany and Spain
(C) Germany and France
(D) France and Spain
The information that we need is shown in the two pie-charts.

Answer:
Step 1: Calculate the difference in female and male managers for each country, as
shown in the following table (with the answers marked in bold):
Female Male
Managers Managers Difference
United
Kingdom 160 180 20
France 175 210 35
Germany 245 230 15
United
States 250 290 40
Spain 225 240 15
Thus the correct answer is (B) Germany and Spain

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 Q21 The HR Director at Shevinshaw’s Ltd conducts a survey. An
eighth of the full- time HR employees state that they would
prefer to work part-time. If this occurred and other staff
numbers remained the same, what would be the total
number of part-time employees for this year?

(A) 37
(B) 89
(C) 27
(D) 56
The information that we need is shown in the graph Staff numbers by function.

Answer:

Step 1: An eighth of the full-time HR employees = 1/8 x 56 = 7

Step 2: Total part-time workers = previous total part-time employees + 7.
12 + 21 +14 + 15 + 20 (+ 7) = 89.
Thus the correct answer is (B) 89

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 Q22 Which function is forecast to lose the same number of
employees as it lost last year?
(A) None of these
(B) Finance
(C) Research
(D) Sales
The information that we need is shown in both the graph and the table Shevinshaw’s
Ltd Staff Numbers by Function.

Answer:

Step 1: The total employee numbers for the current year need to be calculated, as
follows (next year’s projections are shown in brackets):
Marketing = 20 + 12 + 34 = 66 (76)
Finance = 32 + 21 + 45 = 98 (90)
Research = 11 + 14 + 35 = 60 (72)
Sales = 24 + 15 + 52 = 91 (94)
HR = 38 + 20 + 56 = 114 (96)
Step 2: Comparing these to the previous year’s employee numbers shown in the
table, none of the functions is forecast to lose the same number of employees as it
lost last year.
Thus the correct answer is (A) None of these

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 Q23 Which function has the lowest ratio of full-time employees
compared to part-time employees and freelance employees
combined?

(A) Marketing
(B) Finance
(C) Research
(D) HR
The information that we need is shown in the graph. The calculations for each
function are shown in the table below:

Answer:

Marketin Financ Researc

g e h Sales HR
Step 1 – Full-time employees total 34 45 35 52 56
Step 2 - Part-time and freelance
total 32 53 25 39 58
Step 3 - Full-time / Part-time and
freelance total 1.06 0.84 1.4 1.33 0.97
Thus the correct answer is (B) Finance

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 Q24 Which of the following statements is true?

(A) Finance has the most employees

(B) Total Sales employees outnumber total HR
(C) Research has the most employees
(D) HR has the most freelance employees
The information that we need is shown in the table attached to the graph.

Answer:

Step 1: Go through each option to test if it is true or false. Only the last option is true;
HR has the highest number of freelance (38) and full-time employees (56).
Thus the correct answer is (D) HR has the highest number of freelance and full-time
employees

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 Q25 Weekend overtime is paid at a rate of double pay for Marketing
and Research employees, with other employees receiving time
and a half. Which function will work the second highest number
of overtime hours – assuming that each employee works 8 days
per year overtime – next year?
(A) Research
(B) Marketing
(C) Finance
(D) Sales
The information that we need is shown in the table Shevinshaw’s Ltd Staff Numbers
by Function.

Answer:
Step 1: The number of days worked overtime each year is irrelevant since this is the
same for each employee. Another distracter in the question is the overtime rate of
pay. The question is actually asking for the department with the second highest
number of employees. The table below shows the projected staff numbers for next
year and the second highest number of employees is shown in bold;
Projection for next Year
Marketing 76
Finance 90
Research 72
Sales 94
HR 96
Thus the correct answer is (D) Sales

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 Q26 In which month shown did house prices change the most, and
the least, respectively?

(A) March, May

(B) May, January
(C) May, March
(D) March, January
The information that we need is shown in the graph House price inflation.

Answer:

Step 1: The most and the least changes in house price are shown by the highest
(2.4% in March) and the lowest (0.4% in January) rates of inflation. This question
can be done simply by inspection of the graph and is one of the easier questions.
Thus the correct answer is (D) March, January

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 Q27 Which two property prices are in the ratio of 4:5?

(A) 4-bedroom house: 3-bedroom flat

(B) 2-bedroom flat: studio flat
(C) Studio flat: 2-bedroom flat
(D) 2-bedroom flat: 3-bedroom flat
The information that we need is shown in the Property type table.

Answer:

Step 1: The 4:5 ratio needs to be tested on each of the prices given i.e. what the
“other” property price would be if it was 4/5ths of the price (except the lowest price 2-
bedroom flat).
2-bedroom flat £208,000 x 4/5 = £166,400
3-bedroom flat £260,000 x 4/5 = £208,000 = cost of 2-bedroom flat
4-bedroom house £365,000 x 4/5 = £292,000
5-bedroom house £450,000 x 4/5 = £360,000
Thus the correct answer is (D) 2-bedroom flat: 3-bedroom flat

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 Q28 At the end of June, a property speculator buys three 2-bedroom
flats at the average price and rents each one out at £900 profit
per month. If she sells the properties eighteen months later with
house prices having risen 15% since purchase, how much
profit, before costs, has she made?
(A) £140,850
(B) £165,600
(C) £142,200
(D) £48,600
The information that we need is shown in the table Property type.

Answer:

Step 1: Calculate the increase in property value

£208,000 x 15/100 x 3 = £93,600
Step 2: Calculate the rental income
£900 x 3 x 18 = £48,600
Step 3 – Calculate the total profit
£93,600 + £48,600 = £142,200
Thus the correct answer is (C) £142,200

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 Q29 If the cost of a 4-bedroom house continues at the same monthly
rate of inflation as July, what will the cost be at the end of
October?
(A) £385,522
(B) £381,300
(C) £381,327
(D) £381,237
The information that we need is shown in both the graph and the table.

Answer:

Step 1: Monthly rate of inflation (July) = 1.1% = Aug, Sept and Oct rate of inflation
Calculate the monthly increase, as follows:
Price (end of June) = £365,000
Price (end of July) = £365,000 x 1.011 = £369,015
Price (end of August) = £369,015 x 1.011 = £373,074
Price (end of Sept) = £373,074 x 1.011 = £377,178
Price (end of Oct) = £377,178 x 1.011 = £381,327
Thus the correct answer is (C) £381,327

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 Q30 If a newly decorated studio flat was worth £141,400 at the start
of the year, what was its value at the end of February?

(A) £141,679
(B) £142,000
(C) £140,834
(D) £139,679
The information that we need is shown in both the graph and the table.

Answer:

Step 1: Price at the end of Jan = £141,400 decrease by 0.4% = £140,834

Price at the end of Feb = £140,834 increase by 0.6% = £141,679.
Or you could just enter straight into your calculator:
141400 x (0.996) x (1.006) = 141679.4
Thus the correct answer is (A) £141,679

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