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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)

Answer: C

Explanation:

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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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

Answer: B

Explanation:

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

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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

Answer: D

Explanation:

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

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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

Answer: C

Explanation:

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

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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

Answer: D

Explanation:

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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