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Tip: Notice the top of the table tells us we are looking at “Total costs by year”. This
enables us to answer the question. If we were not told the costs given are the whole
picture (i.e. Total costs) we would be right to say “cannot say” since we would not know if
there are other costs we don’t know about. Watch out for this in other questions.

Step 1 – calculate total costs
234 + 117 + 12,505 + 12 + 459 = 13,327

Step 2 - calculate Property depreciation as a % of total costs
117 / 13,327 = 0.878%

Thus the correct answer is  0.9%

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This can probably be done in your head: go along the columns and double the Property depreciation to see if it equals the Staff costs. You will see this is true for years 2007 and 2009.

	2006	2007	2008	2009	2010
Staff costs / Property depreciation	226 /120	234 /117	248 /112	230 /115	215 /132
	>2	2	>2	2	<2

Thus the correct answer is 2007 and 2009

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Apply the ratio to the total sales for 2008
7 x £1,005.0 m / 21 = £335 million.
Note: we can answer this question because we are told that the three models were
equally priced. If we were not told this information we would have to answer “cannot tell”.
Thus the correct answer is  £335 million

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Step 1 – calculate the new average sales price
£62,709 x 105% = £65,844.45
Step 2 – calculate the new number of cars sold
16,710 x 91% = 15,206.1
Note: they can’t sell .1 of a car so we will use 15,206.0. In this question it doesn’t actually
make a difference to the final answer but it’s worth remembering things like this for other
questions.
Step 3 – calculate the total sales increase
£65,844.45 x 15,206 = £1,001.230707 million
Step 4 – calculate the total sales decrease as a %
1,001.230707 ¸ 1,047.9 = 0.95546, which is a 4.45% decrease.
Thus the correct answer is 4.45%

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Production costs = production cost per car x number of cars
= £15,800 x 12,636 = £199.648 million
= £199.6 million (to the nearest £100,000)
Thus the correct answer is  £199.6 million