EA Multi-Source Reasoning 1

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?

Accepted Answer

14.3%

Answer

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?

Accepted Answer

33.3%

Answer

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?

Accepted Answer

The purchase will exceed the budget.

Answer

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?

Accepted Answer

Project A has higher long-term value; Project B recovers faster.

Answer

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?

Accepted Answer

5

Answer

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.

EA - Executive Assesment Practice Test

EA - Executive Assesment Practice Test

EA Multi-Source Reasoning 1