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What percent of total costs did Property depreciation represent in 2007?

        A.  4.7%

        B.  3.7%

        C.  2.7%

        D.  1.9%

        E.  0.9%

Answer: E

Explanation:

Tip: Notice the top of the table tells us we are looking at “Total costs by year”. This enables us to answer the question. If we were not told the costs given are the whole picture (i.e. Total costs) we would be right to say “cannot say” since we would not knowif there are other costs we don’t know about. Watch out for this in other questions. Step 1 – calculate total costs 234 + 117 + 12,505 + 12 + 459 = 13,327 Step 2 - calculate Property depreciation as a % of total costs 117 / 13,327 = 0.878% Thus the correct answer is (E) 0.9%

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Which cost changed by the second largest percent from 2008 to 2010?

        A.  Other expenses

        B.  Staff costs

        C.  Loan impairment

        D.  Inventories

        E.  Property depreciation

Answer: A

Explanation:

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 (A), Other expenses

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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)?

        A.  £10.41 million

        B.  £10.14 million

        C.  £1.04 million

        D.  Can’t tell from data

        E.  

Answer: B

Explanation:

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 (B), £10.14 million

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Between 2010 and 2011 what is the total cut in the marketing budget across the 5 Brands (in 10,000s)?

        A.  135

        B.  400

        C.  500

        D.  1,135

        E.  1,535

Answer: C

Explanation:

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 (C), 500

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Which Brand has suffered the largest percentage cut in its Marketing Budget?

        A.  Brand A

        B.  Brand B

        C.  Brand C

        D.  Brand D

        E.  Brand E

Answer: B

Explanation:

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 (B), Brand B


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