Numerical Reasoning

Test 3

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 What was the 2010 percentage change in the value of the
Pacific Rim holding between October and November (to the
nearest percent)?

Answer:
(A) 41% less
(B) 41% more
(C) 36% less
(D) 34% less
(E) 33% less

Step 1: Calculate the Oct value

The information that you need is shown in the pie-chart
£37.5 million x 20% = £7.5 million
Step 2: Calculate the Nov value
The information that you need is shown in the graph
50.0 x £100,000 = £5 million
Step 3: Calculate the % difference
7.5 - 5.0 = 2.5
100% x 2.5/7.5 = 33.33% less. Or simply divide 5.0 by 7.5 to get 0.6667, which is a
33.3% reduction.
Thus, the correct answer is (E) 33% less

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 Q2 What was the ratio of Pacific Rim: Southern Pacific holdings in
October 2010?

Answer:
(A) 3:2
(B) 2:3
(C) 4:5
(D) 5:4
(E) 4:7
The information that you need is shown in the pie-chart

Step 1: Put these October %’s into a ratio

20%:35% = 20:35
Step 2: Simplify the ratio, looking at the available answers.
20:35 = 4:
Thus, the correct answer is (E) 4:7

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 Q3 In October 2010 which two Pacific Bond fund holdings when
combined had the same value as Southern Pacific holdings?

Answer:
(A) Northern Pacific and Central Pacific
(B) Central Pacific and Pacific Rim
(C) Pacific Mixed and Pacific Rim
(D) Pacific Mixed and Northern Pacific
(E) Pacific Rim and Northern Pacific
The information that you need is shown in the graph

Step 1: Look for those holdings that are likely to have a combined value around the
35% mark:

Northern Pacific + Pacific Mixed = 30%

Pacific Rim + Pacific Mixed = 32%
Northern Pacific + Central Pacific = 33%
Pacific Rim + Northern Pacific = 38%
Central Pacific + Pacific Rim = 35%
Thus, the correct answer is (B) Central Pacific and Pacific Rim

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 Q4 Which of the following represents the largest amount?

Answer:
(A) October’s Pacific Mixed holding
(B) Average November value of each of the 5 holdings
(C) November value of holdings in Northern Pacific
(D) 70% of November’s value of holdings in Southern Pacific
(E) Average December value of each of the 5 holdings

Step 1:
In this one it is not obvious which ones are going to be wrong and therefore able to
be discounted, so we must calculate the value of each option:
(A) October’s Pacific Mixed holding = 4.5 million
(B) Average November value of each of the 5 holdings = 7.16 million
(C) November value of holdings in Northern Pacific = 6.14 million
(D) 70% of November’s value of holdings in Southern Pacific = 6.47 million
(E) Average December value of each of the 5 holdings = 7 million
Thus, the correct answer is (B) Average November value of each of the 5 holdings

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 Q5 In October 2010 what fraction of the total Pacific Bond did the
Northern Pacific and Pacific Mixed fund holdings represent?

Answer:
(A) 1/5
(B) 1/10
(C) 1/4
(D) 3/10
(E) 2/5
The information that you need is shown in the pie-chart.

Step 1: Add the Northern Pacific and Pacific Mixed %’s

18% + 12% = 30%
Step 2: Express this figure as a fraction
30 / 100 = 3/10
Thus, the correct answer is (D) 3/10

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 Q6 For Weeks 1 and 3, across all 5 stores combined, what was the
difference (in units) between Actual and Target sales volumes?

Answer:
(A) 10 over target (Week 1); 10 under target (Week 3)
(B) 10 over target (Week 1); 15 under target (Week 3)
(C) 15 over target (Week 1); 10 under target (Week 3)
(D) 15 over target (Week 1); 15 under target (Week 3)
(E) 20 over target (Week 1); 10 under target (Week 3)

Step 1: Calculate the total Week 1 and Week 3 sales across the 5 Stores
Week 1: 20 + 30 + 25 + 15 + 5 = 95
Week 3: 35 + 40 + 24 + 12 + 9 = 120
Step 2: Calculate the total Week 1 and Week 3 targets across the 5 Stores
Week 1: 15 + 20 + 20 + 10 + 10 = 75
Week 3: 35 + 35 + 30 + 15 + 15 = 130
Step 3: Calculate the difference for Weeks 1 and 3
Week 1: 95 – 75 = 20 over target
Week 3: 120 – 130 = 10 under target
Thus, the correct answer is (E) 20 over target (Week 1); 10 under target (Week 3)

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 Q7 Over the three week period, which Store achieved the highest
sales per sales staff member?

Answer:
(A) Redcliff
(B) Ather
(C) Wilkington
(D) Trew
(E) Tunston

Step 1: Calculate each Store’s total sales

Use the Actual sales figures for each of the 3 weeks, as follows:

Redcliff 20 + 20 + 35 = 75
Ather 30 + 40 + 40 = 110
Wilkington 25 + 18 + 24 = 67
Trew 15 + 14 + 12 = 41
Tunston 5 + 6 + 9 = 20

Step 2: Calculate each Store’s average sales per sales staff member, as follows:

Redcliff 75 / 8 = 9.4
Ather 110 / 9 = 12.2
Wilkington 67 / 5 = 13.4
Trew 41 / 8= 5.1
Tunston 20 / 6 = 3.3

Thus, the correct answer is (C) Wilkington

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 Q8 Next year staff numbers are to be reduced by 1 at stores with 6
or less staff, and by 2 staff at all other stores. What will be the
average monthly target per staff member across all 5 stores if
the regional target (across the 5 stores) is £168,000?

Answer:
(A) £5,000
(B) £6,000
(C) £7,000
(D) £8,000
(E) £9,000

Step 1: Calculate the new staff numbers

Redcliff 8 – 2 = 6 staff
Ather 9 – 2 = 7 staff
Wilkington 5 – 1 = 4 staff
Trew 8 – 2 = 6 staff
Tunston 6 – 1 = 5 staff

Step 2: Calculate the average target per staff member

Average = target / total number of staff = 168,000 / 28 = £6,000
Thus, the correct answer is (B) £6,000

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 Q9 The Western Region’s overall sales (£120,000) were in a ratio
of 3:2 to the Eastern Region’s sales which itself had half the
sales of the Northern and Southern Regions combined. What
were the total sales of all 4 Regions?

Answer:
(A) £180,000
(B) £200,000
(C) £220,000
(D) £240,000
(E) £360,000

Step 1: Calculate each Region’s sales

Eastern Region’s sales = 2 x 120,000 / 3 = 80,000
Northern + Southern Regions’ sales = 80,000 x 2 = 160,000
Step 2: Calculate the total sales
120,000 + 80,000 + 160,000 = 360,000
Thus, the correct answer is (E) £360,000

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 Q10 All sales in the three week period were based on an average
£9.50 reduction in the sales price of the units sold. What was
the total saving made by customers who bought units over the 3
week period (to the nearest £100)?

Answer:
(A) £3,000
(B) £3,500
(C) £4,000
(D) £4,500
(E) £5,000

Step 1: Calculate the total sales

We could use the working from Q6 to obtain Week 1 and Week 3 sales totals.
Week 2 sales = 20 + 40 + 18 + 14 + 6 = 98
Total sales = Week 1 + Week 2 + Week 3 = 95 + 98 + 120 = 313
Step 2: Calculate the amount saved
313 x £9.50 = £2,973.50
Step 3: (to the nearest £100)
£2,973.50 = £3,000
Thus, the correct answer is (A) £3,000
Tip: when summing numbers from a column or row, be careful not to take numbers
from an adjacent category. It is also a good idea to enter the numbers as you go
straight into your calculator, instead of writing out the sum on your rough paper then
performing the calculation. This will reduce the number of stages in your working and
save time and reduce the potential for input errors.

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 Q11 Which sector experienced the highest sales for Quarters 1, 2
and 3 combined?

Answer:
(A) Telecommunications
(B) Utilities
(C) Manufacturing
(D) Financial
(E) Retail
The information that you need is shown in the graph Consultancy income by sector

Step 1: Calculate each sector’s sales for Quarters 1, 2 and 3 combined

Telecommunications = 30 + 27 + 25 = 82
Utilities = 35 + 20 + 20 = 75
Manufacturing = 21 + 32 + 30 = 83
Financial = 25 + 29 + 30 = 84
Retail = 23 + 30 + 25 = 78

Thus, the correct answer is (D) Financial

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 Q12 Quarter 4’s income per sector is in the same ratio as Quarter 3,
and the consultancy income from the Financial sector is
£33,000. What is the consultancy income from the Utilities
sector?

Answer:
(A) Can’t tell from the data provided
(B) £12,000
(C) £22,000
(D) £25,000
(E) £45,000
The information that you need is shown in the graph Consultancy income by sector

Step 1: Find the Quarter 3 ratios

Utilities: Financial = 20:30 = 2:3
Step 2: Apply this ratio to the Utilities sector
Utilities income = £33,000 x 2/3 = £22,000
Thus, the correct answer is (C) £22,000

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 Q13 For Quarters 1 and 3 combined, which two Manufacturing
sector consultants had incomes in the ratio 2:3?

Answer:
(A) Harry and David
(B) Sarah and Jane
(C) Harry and Jane
(D) David and Peter
(E) David and Sarah
The information that you need is shown in the table.

Step 1: Calculate each Consultant’s combined Quarter 1 and Quarter 3 income, as

shown below:
Consultant Quarter 1 Quarter 3 Combined
David 4,000 5,000 9,000
Peter 6,000 7,000 13,000
Sarah 6,000 5,500 11,500
Jane 4,000 7,500 11,500
Harry 1,000 5,000 6,000

The only possible 2:3 ratio is between Harry and David (6,000:9,000)
Thus, the correct answer is (A) Harry and David

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 Q14 The Manufacturing sector income from the five consultants is
supplemented by the work of an associate consultant. What
was the associate consultant’s income from the Manufacturing
sector across Quarters 1 to 3?
Answer:
(A) £3,000
(B) £4,000
(C) £6,000
(D) £8,000
(E) £9,000
The information that you require here is shown in the table.

Step 1: Calculate the total manufacturing income from the 5 consultants

Q1 Total = 21,000
Q2 Total = 28,000
Q3 Total = 30,000
Total income (Quarters 1 to 3) = 79,000
The information that you require next is shown in the graph.

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 Step 2: Calculate the overall consultancy income from the manufacturing sector
21 + 32 + 30 = 83,000
Step 3 – Calculate the supplementary income
83,000 – 79,000 = 4,000
Thus, the correct answer is (B) £4,000

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 Q15 The total quarterly income target, starting with £115,000 for
Quarter 1, increased by 20% for each subsequent Quarter. In
Quarter 3 what was the difference between actual income and
the target?

Answer:
(A) £8,000 under-performance
(B) £18,400 under-performance
(C) £31,000 over-performance
(D) £31,000 under-performance
(E) £35,600 under-performance

Step 1: Calculate the target for Quarter 3, based upon the Quarter 2 target
Quarter 2 target = £115,000 x 120% = £138,000
Quarter 3 target = £138,000 x 120% = £165,600
The information that you require next is shown in the graph.

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 Step 2: Calculate the difference Quarter 3 income
Quarter 3 income (000’s) = 25 + 20 + 30 + 30 + 25 = 130
Step 3: Calculate the difference in Quarter 3 between income and target
130,000 - 165,600 = 35,600 under-performance
Thus, the correct answer is (E) £35,600 underperformance

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 Q16 Simon and Jessica have travel allowances of 60p and 44p per
mile respectively. Simon and Jessica each travel on average 25
miles and 30 miles respectively per sales visit. How much travel
allowance is claimed in total by these 2 Sales Managers in
August?

Answer:
(A) £1,050
(B) £1,122
(C) £2,122
(D) £2,172
(E) £2,272

Step 1: Calculate Simon and Jessica’s total mileage in August

Simon = 60p x 70 x 25 = £1,050
Jessica = 44p x 85 x 30 = £1,122
Step 2: Calculate Simon and Jessica’s combined travel allowance payment
£1,050 + £1,122 = £2,172
Thus, the correct answer is (D) £2,172

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 Q17 If the percentage change in sales visits between September
and October (projected) continues for November, what will
Jessica and Kim’s number of complete sales visits be in
November?

Answer:
(A) 71 visits (Jessica); 77 visits (Kim)
(B) 71 visits (Jessica); 78 visits (Kim)
(C) 72 visits (Jessica); 78 visits (Kim)
(D) 72 visits (Jessica); 79 visits (Kim)
(E) 73 visits (Jessica); 79 visits (Kim)

Step 1: Calculate the % change for Jessica and Kim

Jessica = 81/90 * 100% = 90%, which is a 10% decrease
Kim = 70/62 * 100% = 112.903%, which is a 12.903% increase
Step 2: Calculate each Sales Manager’s number of visits for November
Jessica = 81 x 90% = 72.9 visits
Kim = 70 x 112.903% = 79.03 visits
Step 3 - This step can catch out people. The question asks for “complete sales
visits” and 0.9 is not a complete visit. So, Jessica completed 72 visits. Don’t be
tempted to round up.
Thus, the correct answer is (D) 72 visits (Jessica); visits 79 (Kim)

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 Q18 If the margin of error on October’s projected client visits is +/-
15%, what are the ranges for each Sales Manager (rounded to
the nearest whole visit)?

Answer:
(A) 90–100 (Simon); 77–85 (Jessica); 66–74 (Kim)
(B) 90– 107 (Simon); 74–87 (Jessica); 64–76 (Kim)
(C) 81–109 (Simon); 73–89 (Jessica); 63–77 (Kim)
(D) 81–109 (Simon); 69–93 (Jessica); 60–81 (Kim)
(E) 76–104 (Simon); 64–89 (Jessica); 56–76 (Kim)

Step 1: Calculate the 85% and 115% figures for each Sales Manager
Simon (to the nearest whole visit)
95 x 85% = 80.75 = 81
95 x 115% = 109.25 = 109
Note that already we have eliminated 3 of the possible 5 answers.
Step 2: Jessica:
81 x 85% = 68.85 = 69
81 x 115% = 93.15 = 93
Kim:70 x 85% = 59.5 = 60
70 x 115% = 80.5 = 81
Thus, the correct answer is (D) 81–109 (Simon); 69–93 (Jessica); 60–81 (Kim)
Tip: note the difference between “round to the nearest whole visit” and “give the
number of complete visits”. This is the difference between rounding to the nearest
integer (could be up or down) and ignoring any part-complete events (will always be
rounding down).

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 Q19 Jessica, who travelled 3,500 miles in July, travelled an extra 10
miles per client visit compared to Simon. What was the total
number of miles Simon travelled in July?

Answer:
(A) 2,400
(B) 2,600
(C) 2,800
(D) 3,000
(E) 3,200

Step 1: Let x = Jessica’s average mileage per client visit

July visits = 70 = 3,500 / x
X = 3,500 / 70 = 50 miles per visit
Step 2: Calculate Simon’s average mileage per client visit
50 – 10 = 40 miles per visit
Step 3 – Calculate the total number of miles Simon travelled in July
40 x 65 = 2,600 miles
Thus, the correct answer is (B) 2,600 miles

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 Q20 The average order value per client visit is £145, £135 and £125
for Simon, Jessica and Kim respectively. Which Sales
Managers generate the highest and lowest order values in
June?

Answer:
(A) Kim (most); Jessica (least)
(B) Simon (most); Jessica (least)
(C) Jessica (most); Kim (least)
(D) Jessica (most); Simon (least)
(E) Kim (most); Simon (least)

Step 1: Calculate each Sales Manager’s client sales for June, as follows:

Simon 50 visits in June 50 x £145 = £7,250

Jessica 45 visits in June 45 x £135 = £6,075
Kim 60 visits in June 60 x £125 = £7,500

Thus, the correct answer is (A) Kim (most); Jessica (least)

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 Q21 Which subsidiary will pay the lowest amount in dividends
(interim and final dividends combined)?

Answer:
(A) Subsidiary 1
(B) Subsidiary 2
(C) Subsidiary 3
(D) Subsidiary 4
(E) Subsidiary 5

Step 1: Calculate the total dividends payable per share for each subsidiary
Subsidiary 1 = 6.2 + 15.8 = 22
Subsidiary 2 = 8.5 + 10.5 = 19
Subsidiary 3 = 9 + 46 = 55
Subsidiary 4 = 15 + 10 = 25
Subsidiary 5 = 11 + 25 = 36
Step 2: Calculate the total payable for each subsidiary
Subsidiary 1 = 22 cents x 3 million shares = $660,000
Subsidiary 2 = 19 cents x 3.5 million shares = $665,000
Subsidiary 3 = 55 cents x 12 million shares = $6,600,000
Subsidiary 4 = 25 cents x 2.6 million shares = $650,000
Subsidiary 5 = 36 cents x 20 million shares = $7,200,000
Thus, the correct answer is (D) Subsidiary 4

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 Q22 Which 2 or 3 subsidiaries had combined sales of 18,908?

Answer:
(A) Subsidiaries 1 and 5
(B) Subsidiaries 2 and 5
(C) Subsidiaries 1, 2 and 5
(D) Subsidiaries 3 and 5
(E) Subsidiaries 1, 3 and 5

Step 1: This question is best answered by a process of elimination:

- Review the last number in each Sales figure. The Sales figures for
Subsidiary 1 and Subsidiary 2 end in “4” and the others end in zero.
- Since the total ends in “8” both Subsidiary a and Subsidiary b must be
included in the answer (i.e. “4” + “4” = “8”).
- At this stage you can see that only one of the possible answers includes
Subsidiary 1 and Subsidiary 2. If you wanted to complete the sum to
double-check, do so.
- Subsidiary 1 + 2 + 5 = 1,124 + 3,334 + 14,450 = 18,908.
Thus, the correct answer is (C) Subsidiaries 1, 2 and 5

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 Q23 Over the next year, Subsidiary 5’s Sales are expected to drop
by a fifth whilst its number of staff is expected to increase by
15%. What will be the percentage change in the Sales per
member of staff from Year 1 to the next?

Answer:
(A) 25%
(B) 26%
(C) 29%
(D) 30%
(E) 44%

Step 1: Calculate next year’s changes in the Subsidiary 5 data

Sales 14,450 x 4/5 = 11,560
Number of staff = 13,292 x 115% = 15,285.8
Step 2: Calculate next year’s Sales per member of staff
11,560 / 15,285.66 = 0.756 (in $100,000’s)
Step 3: Calculate this year’s Sales per member of staff
14,450 / 13,292 = 1.087 (in $100,000’s)
Step 4: Calculate the % change in the Sales per member of staff
0.756 / 1.087 = 0.6955, which is a 30.4% drop.
Tip: note we must divide 0.756 by 1.087, not the other way round, because the
question asks us to go from Year 1 to next year. The calculation depends on what
we take as the reference point. In full, the calculation is (1.087 – 0.756) / 1.087 =
30.4%. Thus, the correct answer is (D) 30%

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 Q24 What is the ratio of Subsidiary 4’s interim dividend per share
compared to Subsidiary 5’s final dividend per share?

Answer:
(A) 2:3
(B) 5:2
(C) 2:5
(D) 3:5
(E) 5:3
This is a fairly straight-forward one.

Step 1: Put the figures from the table into a ratio

15:25
Step 2: Simplify the ratio 3:5
Thus, the correct answer is (D) 3:5

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 Q25 What is the lowest average payroll per member of staff (across
the 5 subsidiaries)?

Answer:
(A) $23,751
(B) $22,883
(C) $21,519
(D) $20,764
(E) $20,184

Step 1: Calculate the average payroll for each subsidiary

Subsidiary 1 = $12,700,000 / 555 = $22,883
Subsidiary 2 = $40,900,000 / 1,722 = $23,751
Subsidiary 3 = $28,900,000 / 1,343 = $21,519
Subsidiary 4 = $57,000,000 / 2,824 = $20,184
Subsidiary 5 = $435,500,000 / 13,292 = $32,764

Thus, the lowest and the correct answer is (E) $20,184

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 Q26 If Profit before tax increases by 15% for Competitor B and
decreases by 8% for Competitor A, what is the difference
between Competitor A and Competitor B’s corporation tax
payments (to the nearest £million)?

Answer:
(A) £10 million
(B) £12 million
(C) £14 million
(D) £16 million
(E) £18 million

Tip: Don’t be caught out by the fact that the question lists Competitor B first, when
you might be expecting to see Competitor A then Competitor B. This is intended to
throw those not paying attention.

Step 1: Add 15% to Competitor B’s profit before tax

112 x 115% = 128.8
Step 2: Decrease Competitor A’s profit before tax by 8%
90 x 92% = 82.8
Step 3 - Calculate the difference in corporation tax (at 30%)
(128.8 – 82.8) x 30% = 13.8 = £14 million (to the nearest £million)
Thus, the correct answer is (C) £14 million

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 Q27 Competitor B and Competitor C choose to declare their
Revenues in $ and Euros respectively. What are these figures?
(Use the exchange rates 1£ = $1.66; 1£ = €1.15).

Answer:
(A) $1,043 million (Competitor B); €708 million (Competitor C)
(B) $1,049 million (Competitor B); €690 million (Competitor C)
(C) $1,049 million (Competitor B); €720 million (Competitor C)
(D) $720 million (Competitor B); €1,055 million (Competitor C)
(E) Can’t tell from the data provided

Step 1: Calculate Competitor B revenue in $

632 x 1.66 = $1,049
Step 2: Calculate Competitor C revenues in Euros
600 x 1.15 x = €690
Thus, the correct answer is (B) $1,049 million (Competitor B); €690 million
(Competitor C)

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 Q28 What would be the difference in Euros if Competitor A used an
exchange rate of 1£ = €1.20, rather than 1£ = €1.15, when
calculating its Profit after tax?

Answer:
(A) €0.05 million
(B) €1.15 million
(C) €2.05 million
(D) €3.05 million
(E) €3.15 million

Step 1: Calculate the difference in the exchange rate

1.20 - 1.15 = €0.05
Step 2: Calculate the difference in Euros
€0.05 x 63 = €3.15 million
Thus, the correct answer is (E) €3.15 million

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 Q29 What was the average Gross profit across the 3 competitors (to
the nearest £10million)?

Answer:
(A) £140 million
(B) £141 million
(C) £142 million
(D) £143 million
(E) £144 million

Step 1: Calculate the total Gross Profit 128 + 148 + 147 = 423
Step 2: Calculate the average 423 / 3 = 141
Step 3 – To the nearest £10million = £140 million
Thus, the correct answer is (A) £140 million

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 Q30 Competitor C moves to a country charging 15% corporation tax
and corporation tax falls to 22% for Competitors A and B. What
is the total corporation tax payable for the 3 competitors (based
upon the Profit before tax figures shown)?

Answer:
(A) £62 million
(B) £46 million
(C) £26 million
(D) £25 million
(E) Can’t tell from data

Step 1: Calculate the corporation tax payable for each competitor

Competitor A = 90 x 22% = 19.8
Competitor B = 112 x 22% = 24.6
Competitor C = 117 x 15% = 17.6
Step 2: Calculate the total corporation tax payable
19.8 + 24.6 + 17.6 = £62 million
Thus, the correct answer is (A) £62 million

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 End of test

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