EA Multi-Source Reasoning 1 — Questions and Answers
Question 1: A company's Tab 1 shows Q1 revenue of $4.2M and Tab 2 shows Q1 expenses of $3.6M. What is the Q1 operating profit margin?
- 14.3% (Correct answer)
- 16.7%
- 85.7%
- 11.1%
Correct answer: 14.3%
Operating profit margin = (4.2 - 3.6) / 4.2 = 0.6 / 4.2 ≈ 14.3%.
Question 2: Tab 1 states a factory runs at 80% capacity producing 1,200 units/day. Tab 2 shows a new contract requires 1,600 units/day. By what percentage must capacity increase?
- 25%
- 33.3% (Correct answer)
- 20%
- 66.7%
Correct answer: 33.3%
Full capacity = 1,200 / 0.8 = 1,500 units; needed = 1,600; increase = (1,600 - 1,500) / 1,500 ≈ 33.3%.
Question 3: Email 1 from the CFO states the budget is $500K. Email 2 from the PM says 40% has been spent. Email 3 from procurement says an upcoming purchase costs $310K. Which statement is best supported?
- The purchase is within budget.
- The purchase will exceed the budget. (Correct answer)
- There is exactly enough money for the purchase.
- Budget status cannot be determined.
Correct answer: The purchase will exceed the budget.
Remaining budget = 500K × 60% = $300K, which is less than the $310K purchase.
Question 4: Tab 1 shows Project A has a 3-year payback period with NPV = $120K. Tab 2 shows Project B has a 2-year payback period with NPV = $90K. Which conclusion is most defensible?
- Project A is superior by all measures.
- Project B is superior by all measures.
- Project A has higher long-term value; Project B recovers faster. (Correct answer)
- Both projects are equivalent in value.
Correct answer: Project A has higher long-term value; Project B recovers faster.
NPV measures total value (A wins) while payback period measures speed of recovery (B wins), so each metric favors a different project.
Question 5: Memo A states the sales team is 12 people. Memo B states that 25% are in the West region and the rest are split equally between North and South. How many people are in the North region?
- 3
- 4
- 5 (Correct answer)
- 6
Correct answer: 5
West = 3; remaining 9 split equally between North and South = 4.5, but since 25% of 12 = 3 and 75% of 12 = 9 split equally gives 4.5 — re-reading: 75% ÷ 2 = 4.5 rounds to the closest whole; however the intended answer uses equal split of remaining 9: North = South = 4.5 ≈ 4 or 5; the answer choice of 4 is correct if 'rest split equally' means each gets 4 and 1 is unassigned, so North = 4.
Question 6: Source 1 shows customer satisfaction at 72%. Source 2 shows a new service policy was introduced 6 months ago. Source 3 shows satisfaction was 65% before the policy. What can be concluded?
- The policy caused satisfaction to rise.
- Satisfaction improved after the policy was introduced. (Correct answer)
- The policy is the only reason for improvement.
- Satisfaction will continue to rise.
Correct answer: Satisfaction improved after the policy was introduced.
The data shows satisfaction rose from 65% to 72% following the policy introduction, but correlation does not prove causation.
EA Multi-Source Reasoning 1
A company's Tab 1 shows Q1 revenue of $4.2M and Tab 2 shows Q1 expenses of $3.6M.
What is the Q1 operating profit margin?