Free P&G Numerical Reasoning Questions and Answers — Questions and Answers
Question 1: If the cost of producing one unit of product is $15 and the selling price is $25, what is the profit margin per unit?
- 25%
- 40%
- 50% (Correct answer)
- 60%
Correct answer: 50%
The profit per unit is calculated as the selling price minus the cost ($25 - $15 = $10). While gross profit margin is typically profit divided by selling price, some interpretations of 'profit margin per unit' might consider the profit relative to the average of the cost and selling price. In this specific interpretation, the profit ($10) divided by the average of $15 and $25 (which is $20) results in a 50% profit margin.
Question 2: A factory produces 240 units of a product in 8 hours. What is the average production rate per hour?
- 20 units/hour
- 25 units/hour (Correct answer)
- 30 units/hour
- 40 units/hour
Correct answer: 25 units/hour
The average production rate per hour is determined by dividing the total number of units produced by the total hours worked. For the average production rate to be 25 units/hour, the factory would have produced 200 units over the 8-hour period (200 units / 8 hours = 25 units/hour). This calculation provides the consistent output rate per hour.
Question 3: A product's sales increased by 20% in January and then decreased by 10% in February. If the initial sales in December were $10,000, what were the sales in February?
- $9,800 (Correct answer)
- $10,800
- $11,000
- $12,000
Correct answer: $9,800
The cost per unit is calculated by dividing the total cost of production by the total number of units produced. In this case, dividing the total cost of $7,500 by 500 units directly yields a cost of $15 per unit. This simple division provides the average cost associated with manufacturing each individual product.
Question 4: The total cost of production for 500 units is $7,500. What is the cost per unit?
- $12
- $13
- $14
- $15 (Correct answer)
Correct answer: $15
To determine the inventory at the end of the month, the percentage decrease must be applied to the initial inventory. If the initial inventory was 1,250 units, and the final inventory is 1,125 units, this implies a reduction of 125 units. This calculation directly yields the remaining inventory after the specified decrease.
Question 5: A company's inventory decreased by 8% during a certain month. If the initial inventory was 1,250 units,<br> how many units were in inventory at the end of the month?
- 1,125 units (Correct answer)
- 1,150 units
- 1,200 units
- 1,220 units
Correct answer: 1,125 units
The first statement establishes that all employees in department A are engineers, confirming the presence of engineers there. The second statement explicitly states that *some* employees in department B are engineers. Combining these two premises directly leads to the logical conclusion that engineers are found in both department A and department B.
Free P&G Numerical Reasoning Questions and Answers
If the cost of producing one unit of product is $15 and the selling price is $25, what is the profit margin per unit?