Data Interpretation

Detailed Solution

88. Calculate the average
(2.6 + 1.6 -1.8 - 0.8 + 1.2) / 5 = 0.56
So the correct answer is 0.56

89. Step 1 – calculate the total R&D spends per project for 2009
Addition of 5 projects = 2,483.4 (£1000’s)
Step 2 – add the 1.2% predicted increase for 2010
2,483,400 x 101.2% = £2.51 million
So the correct answer is £2.5 million

90. Step 1 – total R&D spend for 2009 is obtained from the table.
Addition of 5 projects = 2,483.4 (£1000’s) = £2,483,400. You may still have this number from your previous notes.
Note 1: notice that the graph gives “change in R&D spend compared with previous year”.
So in 2009 the change compared to 2008 was -0.8% from the graph. It is NOT the difference between -1.8% and -0.8% (i.e. +1.0%).
Note 2: to get the correct percentage calculation think about a 0.8% drop from the 2008 figure to the 2009 figure. We would say [2008 figure] x 0.992 = [2009 figure]. We have calculated the 2009 figure to be £2,483,400 so by rearranging we can find 2008. Step 2 – allow for the 0.8% decrease in R&D spend for 2009 compared with 2008
£2,483,400 ÷ 0.992 = £2,503,427
Step 3 – to the nearest £1000
So the correct answer is £2,503,000

91. Step 1
Total R&D spend in 2009 was £2,483.4 (thousands). So £2,483,400.
Step 2
R&D costs we are told are 12% of spend so 12% x £2,483,400 = £298,008.
Step 3
We are told the R&D spend in 2010 is projected to be £2,483,400 x 101.2% = £2,513,200.8
And we are told the R&D costs are expected to be £298,000 x 101.1% = £301,286.1.
Step 4
So the available R&D money left after costs is (2,513,200.8) – (301,286.1) = £2,211,914.7.
So the correct answer is £2.21 million

92. Step 1 – add the additional 2.5% R&D charge for the two most expensive R&D projects for 2009
2010 additional New product development spend = 1056 x 0.025 = 26.4
2010 additional Process improvement systems spend = 672.8 x 0.025 = 16.82
Step 2 – Calculate Total R&D spend for 2009
Total R&D spend = 425.9 + 672.8 + 215.5 + 1,056 + 113.2 + 26.4 + 16.82 = £2,526,620
Thus the correct answer is £2,527,000

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