Fig 1.2
Brand A and Brand D are to have their number of staff reduced by the same percentage reduction seen by their Marketing Budgets between 2010 and 2011. If the number of staff at Brand A was originally 120 and the number of staff at Brand D triple this, what are the new reduced staff numbers for each Brand?
Can’t tell from the data
35 (Brand A); 142 (Brand D)
60 (Brand A); 240 (Brand D)
90 (Brand A); 252 (Brand D)
50 (Brand A); 360 (Brand D)
Step 1 – calculate the percentage reduction in Marketing Budget for each Brand. Brand A: 225 / 300 = 25% reduction Brand D: 210 / 300 = 30% reduction
Step 2 – calculate the new number of staff for Brand A 120 x 0.75% = 90
Step 3 – calculate the new number of staff for Brand D (120 x 3) x 0.7 = 252
So the correct answer is 90 (Brand A); 252 (Brand D)
Which Brand has suffered the largest percentage cut in its Marketing Budget?
Brand A
Brand B
Brand C
Brand D
Brand E
Step 1 - Calculate the % cut for each branch from 2010 to 2011:
Brand A = 75/300 x 100% = 25% Brand B = 135/410 x100% = 32.9% Brand C = 85/260 x 100% = 32.7% Brand D = 90/300 x 100% = 30% Brand E = 115/365 x 100% = 31.5%
So the correct answer is Brand B
Between 2010 and 2011 what is the total cut in the marketing budget across the 5 Brands (in 10,000s)?
135
400
500
1,135
1,535
Step 1 – calculate the 2010 total marketing budget for each Brand 300 + 410 + 260 + 300 + 365 = 1635
Step 2 – calculate the 2011 total marketing budget for each Brand 225 + 275 + 175 + 210 + 250 = 1135
Step 3 – calculate cut 2010 marketing budget – 2011 marketing budget = 1635 – 1135 = 500 (in 10,000s)
So the correct answer is 500
Fig 1.1
If the 2006 Inventories cost had increased by an eighth compared to the previous year, what was the previous year’s Inventories cost (to the nearest £10,000)?
£10.41 million
£1.04 million
1.01 million
Can’t tell from data
£10.14 million
To increase by an eighth (12.5%) we simply multiply by 1.125. So we can say (previous year’s Inventory costs) x 1.125 = £11,410. Rearranging we have previous year’s inventory costs = (£11,410 ¸ 1.125) = £10,142,222
Thus the correct answer is £10.14 million
Which cost changed by the second largest percent from 2008 to 2010?
Other expenses
Staff costs
Loan impairment
Inventories
Property depreciation
Step 1 – calculate the % change for each of the 6 costs between the years 2008 to 2010.
Staff costs: 215 / 248 = 0.867 ; 13.3% decrease Property depreciation: 132 / 112 = 1.179 ; 17.9% increase Inventories: 16,420 / 11,842 = 1.387 ; 38.7% increase Loan impairment: 22 / 9 = 2.44 ; 144.4% increase Other expenses: 502 / 357 = 1.406 ; 40.6% increase
Note: be careful to note the question asks for “the second largest”. It is a common mistake to overlook this and select the largest increase.
Thus the correct answer is Other expenses