Have you tried the official Mendas financial reasoning test sample questions? Want to know how you did, or what you needed to do to answer the questions correctly? Mendas don't actually tell you how you have done, so read on to get both the answers and explanations to each question from JobTestPrep's test developers.
The Mendas financial reasoning test practice leaflet is a vital resource for anyone taking the financial reasoning test as it gives you an insight into the skills you must have in order to answer the questions in the test. However there is one vital flaw in the leaflet. It does not provide explanations allowing you to understand where you went wrong. This blog sets out explanations and solving strategies for each of the three practice questions in the leaflet.
Practice Question 1Answer: B - 37%
We are told in the information above that profits rose by 33% when the box office takings rose by 40%. We are also told in the questions that there is a direct correlation between the percentage change in box office takings and the percentage change in profits. Based on this we can conclude that there is a ratio of 33:40 between the profit change and box office change.
This ratio means that for every 40 percentage points the box office takings change, the profits change by 33 percentage points. Since 33 is 82.5% of 40 (33/40 = 0.825), we can say that profits change by 82.5% the amount that box office takings change.
If analysts predicted an increase of 45% in box office takings, they would have predicted the profits to increase by 82.5% as much.
82.5% × 45% = 37%
Practice Question 2Answer: C - €33.8 million
Last year, the OFT spent €26 million of the €78 million budget on its enforcement. This means that 33.33% of the total budget was spent on enforcement (26 million/78 million = 0.333).
We are told that this year the proportion of total expenditure on enforcement will change by 10 percentage points, but the total budget will be unchanged.
They will therefore spend 43.33% of the unchanged €78 million budget on enforcement.
4333 × €78,000,000 = €33.8 million
Practice Question 3Answer: A - €210,750
Profit = Revenue – Expenses
First let’s calculate the company’s total revenue:
In Month 2 Langridge Ltd sold 130 units for €8,000 each, therefore their total revenue is equal to:
130 × €8,000 = €1,040,000
In order to calculate all of company’s expenses we need to account for their fixed costs, or their overhead, along with their variable costs, or costs per unit.
Notice that the last line of the top table provides the total monthly overheads; in Month 2 it was €375,550
To calculate their total variable costs we must multiply the number of units sold by the cost per unit. This is equal to:
130 × (€260 + €2,580 + €650) = €453,700
If we place these numbers back into the original equation we will find that:
Profit = €1,040,000 – (€375,550 + €453,700) = €210,750
Alternate SolutionThis question can also be solved using the equation:
Profit = Units sold × (Price per unit – Cost per unit) – Overhead Costs
If we place the proper numbers into this equation we will find:
Profit = 130 × (€8,000 – (€260 + €2,5280 +€650)) – €375,550 = €210,750
Prepare for your Financial Reasoning TestNow you have got a taste of the skills required in the Mendas financial reasoning test, start practising for your test today with JobTestPrep's range of resources, designed to see you through any test.
~ JobTestPrep Team ~