HBRI - Hogan Business Reasoning Inventory Quantitative Reasoning: Word Problems Questions and Answers

Question 1

A sales team of 5 members was projected to bring in $250,000 in revenue for the quarter. At the end of the quarter, the actual revenue was $310,000. However, two of the original team members had left mid-quarter and were not replaced. What was the percentage increase in revenue per salesperson compared to the original projection?

Accepted Answer

75

Answer

First, calculate the initial number of invoices per employee: 500 invoices / 10 employees = 50 invoices/employee. Next, calculate the total increased output: 500 invoices * 1.20 = 600 invoices. After the reduction in staff, the new number of employees is 10 - 2 = 8. Finally, calculate the new rate per employee: 600 invoices / 8 employees = 75 invoices/employee.

Question 2

A company's marketing budget is allocated as follows: 40% for digital advertising, 30% for events, 20% for print media, and 10% for public relations. If the total budget is $500,000, and the company decides to decrease the print media budget by 25% and reallocate those funds to digital advertising, what will be the new budget for digital advertising?

Accepted Answer

$225,000

Answer

First, calculate the initial budget for print media: 20% of $500,000 is $100,000. Next, calculate the amount of the decrease: 25% of $100,000 is $25,000. This $25,000 is reallocated to digital advertising. The initial digital advertising budget was 40% of $500,000, which is $200,000. The new digital advertising budget is $200,000 + $25,000 = $225,000.

Question 3

A manufacturing plant produces 150 units per hour. The plant operates in two 8-hour shifts per day. If the cost to produce one unit is $12, and the company wants to achieve a daily production cost savings of $3,600, how many units per hour must the plant produce to meet this goal, assuming all other factors remain constant?

Accepted Answer

384

Answer

First, find the production rate per hour for each machine. Machine 1: 80 widgets / 4 hours = 20 widgets/hour. Machine 2: 120 widgets / 5 hours = 24 widgets/hour. Now, calculate the total production for an 8-hour shift for each machine. Machine 1: 20 widgets/hour * 8 hours = 160 widgets. Machine 2: 24 widgets/hour * 8 hours = 192 widgets. Finally, add their outputs together: 160 + 192 = 352 widgets.

Question 4

A project manager estimates a project will take 4 programmers 120 hours each to complete. The total budgeted cost for their time is $48,000. Due to a deadline change, the project must be completed in a timeframe that only allows for 96 hours of work per programmer. Which of the following must happen to complete the project on time without increasing the total budgeted cost?

Accepted Answer

Hire one additional programmer at the same hourly rate.

Answer

First, calculate the total hours required: 4 programmers * 120 hours/programmer = 480 total hours. Next, find the hourly rate: $48,000 / 480 hours = $100/hour. With the new deadline, each of the 4 programmers can only work 96 hours, for a total of 4 * 96 = 384 hours. This leaves a deficit of 480 - 384 = 96 hours. To complete the project, an additional 96 hours of work are needed. Hiring one additional programmer to work the new maximum of 96 hours at the same rate ($100/hour) would fulfill the required hours and maintain the budget (5 programmers * 96 hours * $100/hour = $48,000).

Question 5

A retail store purchases jackets for $45 each and sells them for $75. During a sale, the remaining 50 jackets are discounted by 20%. What is the total profit earned on these 50 jackets if they all sell at the discounted price?

Accepted Answer

$750

Answer

First, calculate the discounted selling price. The original price is $75. A 20% discount is $75 * 0.20 = $15. The discounted price is $75 - $15 = $60. Next, calculate the profit per jacket at the discounted price: $60 (sale price) - $45 (cost) = $15 profit per jacket. Finally, calculate the total profit for the 50 jackets sold: 50 jackets * $15/jacket = $750.

HBRI - Hogan Business Reasoning Inventory Practice Test

HBRI - Hogan Business Reasoning Inventory Practice Test

HBRI - Hogan Business Reasoning Inventory Quantitative Reasoning: Word Problems Questions and Answers