GMAT Practice Test: Full-Length Mock Exam with Answers
Total Questions: 64
Total Test Time: 2 Hours 15 Minutes
This test has been designed to help you familiarize yourself with the structure, timing, and question types commonly found on the GMAT examination. By completing this practice test, you can assess your current level of preparation, identify areas for improvement, and build confidence for test day.
Section 1: Quantitative Reasoning
Questions: 21
Time: 45 Minutes
Instructions: This section assesses your ability to solve quantitative problems and apply mathematical reasoning. Read each question carefully and select the best answer from the options provided.
1. If n is a positive integer, gcd(n, 18) = 6 and lcm(n, 18) = 126. What is the value of n?
Answer: D. 42
Brief Explanation: For positive integers a and b, ab = gcd(a,b) × lcm(a,b). Thus 18n = 6 × 126 = 756, so n = 42.
2. A store marks an item 40% above cost and then sells it at a discount of x% off the marked price. If the selling price is 12% above cost, what is x?
Answer: C. 20
Brief Explanation: Let the cost be C. The marked price is 1.40C. The selling price is 1.12C, so 1.40C(1 - x∕100) = 1.12C. Hence x = 20.
3. If 3ˣ⁺² = 81 × 9ˣ⁻¹, what is the value of x?
Answer: C. 0
Brief Explanation: Rewrite all terms as powers of 3: 3ˣ⁺² = 3⁴ × (3²)ˣ⁻¹ = 3²ˣ⁺². Therefore x + 2 = 2x + 2, so x = 0.
4. Machine A can complete a job in 12 hours, machine B can complete the same job in 18 hours, and machine C can complete it in 24 hours. A and B work together for 3 hours, after which C joins them. How many hours in total are required to complete the job?
Answer: C. 81∕13
Brief Explanation: A and B together complete 1∕12 + 1∕18 = 5∕36 of the job per hour. In 3 hours, they complete 5∕12, leaving 7∕12. With C, the combined rate is 13∕72. The remaining time is (7∕12)∕(13∕72) = 42∕13 hours. Total time = 3 + 42∕13 = 81∕13 hours.
5. In a class of 130 students, 60 study algebra, 54 study arithmetic, and 42 study statistics. Of these students, 18 study both algebra and arithmetic, 15 study both algebra and statistics, 11 study both arithmetic and statistics, and 8 study all three subjects. How many students study none of the three subjects?
Answer: C. 14
Brief Explanation: By inclusion-exclusion, the number studying at least one subject is 60 + 54 + 42 - 18 - 15 - 11 + 8 = 116. Therefore 130 - 116 = 14 students study none.
6. A decreasing arithmetic sequence has five positive terms. The sum of the second and fifth terms is 38, and the product of the third and fourth terms is 336. What is the first term?
Answer: D. 44
Brief Explanation: Let the first term be a and the common difference be d. Then a₂ + a₅ = (a+d)+(a+4d)=38, so 2a+5d=38. Also (a+2d)(a+3d)=336. Solving gives (a,d) = (44,-10) or (-6,10). Since the sequence is decreasing and all terms are positive, a = 44.
7. A box contains 3 red, 4 blue, and 5 green balls. If two balls are selected without replacement, what is the probability that the two balls are of different colors?
Answer: C. 47∕66
Brief Explanation: There are C(12,2)=66 possible pairs. Same-color pairs: C(3,2)+C(4,2)+C(5,2)=3+6+10=19. Different-color pairs = 66 - 19 = 47, so the probability is 47∕66.
8. For positive integers a and b, a∕b = 0.625 and lcm(a,b) = 240. What is a + b?
Answer: C. 78
Brief Explanation: Since 0.625 = 5∕8, let a = 5k and b = 8k. Then lcm(a,b) = 40k = 240, so k = 6. Thus a + b = 30 + 48 = 78.
9. Five integers are arranged from least to greatest. Their mean is 18, their median is 17, and their range is 20. What is the greatest possible value of the fourth integer?
Answer: C. 26
Brief Explanation: Let the integers be a ≤ b ≤ 17 ≤ d ≤ e. The mean gives a+b+17+d+e=90, and the range gives e-a=20. Substitute e=a+20: b+d+2a=53. To maximize d, minimize a and b, with b ≥ a and d ≤ a+20. Since d ≤ a+20 and d=53-b-2a ≤ 53-3a, we need 53-3a ≤ a+20, so a≥9. With a=9 and b=9, d=26, attainable by 9, 9, 17, 26, 29.
10. If a and b are positive integers and √(2ᵃ × 8ᵇ) ∕ 4 = 2⁵, how many ordered pairs (a,b) satisfy the equation?
Answer: C. 4
Brief Explanation: Since 8ᵇ = 2³ᵇ, the left side is 2⁽⁽ᵃ⁺³ᵇ⁾∕²⁾ ∕ 2² = 2⁵. Thus (a+3b)∕2 - 2 = 5, so a + 3b = 14. Positive integer solutions are b=1,2,3,4 with a=11,8,5,2. There are 4 ordered pairs.
11. How many liters of a 50% saline solution must be mixed with a 20% saline solution to produce 80 liters of a 35% saline solution?
Answer: C. 40
Brief Explanation: Let x be the liters of 50% solution. Then 0.50x + 0.20(80-x) = 0.35(80). This gives 0.30x = 12, so x = 40.
12. A manufacturer makes two products, P and Q. Each unit of P requires 4 hours of assembly and 3 hours of finishing. Each unit of Q requires 2 hours of assembly and 5 hours of finishing. If exactly 52 assembly hours and 74 finishing hours are used, how many total units are produced?
Answer: C. 18
Brief Explanation: Let p and q be the numbers of units of P and Q. Then 4p+2q=52 and 3p+5q=74. The first equation gives 2p+q=26, so q=26-2p. Substitute: 3p+5(26-2p)=74, so -7p=-56 and p=8. Then q=10, and p+q=18.
13. If x + 1∕x = 5, what is the value of x³ + 1∕x³?
Answer: D. 110
Brief Explanation: Use (x+1∕x)³ = x³ + 1∕x³ + 3(x+1∕x). Therefore x³ + 1∕x³ = 5³ - 3(5) = 125 - 15 = 110.
14. How many integers from 100 through 999, inclusive, leave a remainder of 2 when divided by 7 and a remainder of 3 when divided by 5?
Answer: C. 25
Brief Explanation: The simultaneous conditions are satisfied by integers congruent to 23 modulo 35. The first such integer at least 100 is 128, and the last at most 999 is 968. The sequence 128, 163, ..., 968 has ((968-128)∕35)+1 = 25 terms.
15. Adult tickets cost $16 each and child tickets cost $9 each. If 49 tickets are sold for a total of $595, how many adult tickets are sold?
Answer: C. 22
Brief Explanation: Let a be the number of adult tickets. Then child tickets = 49-a, so 16a + 9(49-a) = 595. Thus 7a + 441 = 595, so a=22.
16. Machine A produces 40% more units per hour than machine B. Together, the two machines produce 720 units in 6 hours. How many units will machine A produce alone in 5 hours?
Answer: C. 350
Brief Explanation: Let B's rate be r units per hour. Then A's rate is 1.4r, and together they produce 2.4r units per hour. Since 720∕6 = 120, 2.4r=120, so r=50 and A's rate is 70. In 5 hours, A produces 350 units.
17. A quantity increases by p% and then decreases by 20%. If the final quantity is 4% less than the original quantity, what is p?
Answer: D. 20
Brief Explanation: Let the original quantity be 1. Then 0.80(1+p∕100)=0.96. Thus 1+p∕100=1.20, so p=20.
18. A set of six positive integers has mean 12, unique mode 10, and median 11.5. What is the greatest possible value of the largest integer in the set?
Answer: C. 24
Brief Explanation: The sum is 72. In order, let the numbers be x₁ ≤ x₂ ≤ x₃ ≤ x₄ ≤ x₅ ≤ x₆. The median condition gives x₃+x₄=23. To maximize x₆, make the first five values as small as possible while keeping 10 as the unique mode. Taking 1, 10, 10, 13, 14 uses 48, leaving x₆=24. This set has mean 12, median 11.5, and unique mode 10.
19. What is the units digit of 7⁸³?
Answer: B. 3
Brief Explanation: The units digits of powers of 7 cycle as 7, 9, 3, 1. Since 83 leaves remainder 3 when divided by 4, the units digit is the third term in the cycle, 3.
20. A variable y varies directly as the square of x and inversely as z. If y = 18 when x = 3 and z = 2, what is y when x = 4 and z = 6?
Answer: C. 32∕3
Brief Explanation: The relationship is y = kx²∕z. Since 18 = k(9)∕2, k=4. When x=4 and z=6, y = 4(16)∕6 = 32∕3.
21. If m and n are positive integers such that m < n, n - m = 12, and mn is divisible by 35, what is the least possible value of m + n?
Answer: D. 58
Brief Explanation: Since 35 = 5 × 7, mn must contain both a factor of 5 and a factor of 7. Since n = m + 12, testing small values shows that m = 23 and n = 35 is the least valid pair. Thus m + n = 23 + 35 = 58.
Section 2: Verbal Reasoning
Questions: 23
Time: 45 Minutes
Instructions: This section evaluates your reading comprehension, critical reasoning, and ability to analyze written information. Choose the answer that best addresses each question.
Reading Comprehension Passage I - Platform Governance and Product Quality
For much of the past decade, managers of digital marketplaces assumed that lowering the cost of entry for sellers would improve consumer welfare: more sellers would create more variety, and more variety would sharpen competition. Yet several mature marketplaces have recently moved in the opposite direction, raising certification requirements, limiting the number of listings in certain categories, and charging higher fees to sellers whose products generate unusually high rates of returns.
The apparent reversal is less paradoxical than it seems. In markets in which consumers can easily evaluate quality before purchase, additional variety is generally valuable. In many digital marketplaces, however, buyers often infer quality from platform signals, such as ranking, reviews, badges, and refund policies. If low-quality sellers can imitate those signals cheaply, the marketplace may become crowded with superficially attractive but disappointing products. Consumers then spend more effort searching, trust the platform less, and eventually reduce their purchases. Under those conditions, a platform that restricts entry may increase overall welfare even while reducing the number of sellers.
This does not mean that restricting entry is always desirable. Certification can become a way for incumbent sellers to block efficient competitors, and higher fees can be passed on to consumers. The crucial question is whether a restriction screens for information that consumers cannot obtain cheaply themselves or merely protects existing sellers from rivalry. Platforms that fail to distinguish between these cases may mistake a temporary improvement in average ratings for a durable improvement in marketplace quality.1. The primary purpose of the passage is to
Answer: A
Brief Explanation: The passage explains why restricting seller entry can, under information problems, improve consumer welfare while warning that restrictions can also be misused.
2. According to the passage, additional seller variety is most likely to improve consumer welfare when
Answer: B
Brief Explanation: The passage explicitly contrasts observable-quality markets with digital markets where buyers rely on platform signals.
3. The author would most likely agree with which of the following statements about certification requirements?
Answer: B
Brief Explanation: The author says the crucial question is whether restrictions screen for information consumers cannot cheaply obtain.
4. The final sentence of the passage functions primarily to
Answer: B
Brief Explanation: The sentence warns that improved average ratings may be temporary and misleading, qualifying the policy discussion.
Reading Comprehension Passage II - Microclimates and Urban Trees
Urban tree-planting programs are often promoted as a straightforward response to rising city temperatures. Trees shade pavement, release water vapor through transpiration, and can reduce the energy required to cool nearby buildings. But recent microclimate studies suggest that the cooling effect of urban trees depends less on the number of trees planted than on where and how they are planted.
In narrow streets lined with tall buildings, continuous canopies may trap warm air and reduce nighttime ventilation, particularly when the trees have dense foliage and the street is poorly aligned with prevailing winds. In open plazas, by contrast, even a modest cluster of trees can substantially lower daytime surface temperatures without impeding air movement. Soil conditions also matter. Trees planted in compacted soil with limited access to water may survive but transpire little, producing shade without the evaporative cooling often assumed in climate models.
These findings do not undermine urban forestry. Rather, they challenge the common practice of using tree counts as the chief measure of success. A city that plants fewer trees but places them to maximize shade, ventilation, and water access may achieve more cooling than a city that simply meets an ambitious planting quota. The policy lesson is not that trees are unreliable climate tools, but that they must be treated as components of local design systems rather than as interchangeable units.5. Which of the following best states the main idea of the passage?
Answer: B
Brief Explanation: The passage argues that tree placement, ventilation, water access, and local design determine cooling effectiveness.
6. The passage suggests that dense tree canopies in narrow streets may sometimes increase heat retention because they
Answer: C
Brief Explanation: Dense canopies can trap warm air and reduce nighttime ventilation.
7. Which of the following, if true, would most directly support the policy recommendation in the final paragraph?
Answer: B
Brief Explanation: The choice directly compares design-based planting with quota-based planting and supports the recommendation.
8. The author’s tone toward urban forestry is best described as
Answer: C
Brief Explanation: The author supports urban forestry but cautions that simplistic tree-count targets are inadequate.
Reading Comprehension Passage III - Informal Credit and Economic Development
Economic historians have long debated why some regions industrialized rapidly while others, with similar natural resources, remained dependent on small-scale commerce. One explanation emphasizes formal financial institutions: banks, securities markets, and enforceable contracts. According to this view, entrepreneurs require impersonal sources of capital before they can expand beyond family enterprises. Without such institutions, investment remains local and cautious.
Recent work on merchant networks complicates this account. In several port cities that lacked sophisticated banks, merchants extended credit across long distances through reputation-based arrangements. A merchant who defaulted risked exclusion not merely from one transaction but from a network of future opportunities. These networks could mobilize capital quickly, especially in trades where information traveled along predictable routes. However, their strength was also their limitation. Because trust depended on repeated interaction and shared norms, outsiders often found it difficult to obtain credit even when their projects were promising.
The evidence therefore suggests that informal credit networks were neither primitive substitutes for banks nor complete alternatives to them. They could support expansion under conditions in which reputational sanctions were credible, but they tended to reinforce the boundaries of the communities that sustained them. Industrialization may have required not simply more capital, but mechanisms that allowed capital to move beyond circles of inherited trust.9. The passage is primarily concerned with
Answer: C
Brief Explanation: The author modifies a formal-institution account by showing what informal credit could and could not do.
10. The author mentions “a network of future opportunities” in order to explain
Answer: B
Brief Explanation: The phrase explains reputational punishment: default risked exclusion from future network transactions.
11. Which of the following can be inferred from the passage about entrepreneurs outside established merchant communities?
Answer: B
Brief Explanation: Outsiders could struggle to obtain credit even when their projects were promising.
12. Which of the following is most analogous to the role of informal credit networks as described in the passage?
Answer: A
Brief Explanation: Informal networks help insiders but limit access by outsiders, like a private language.
13. A regional airline found that flights departing after 8 p.m. had a higher rate of passenger complaints than earlier flights. The airline concluded that passengers are more dissatisfied at night and therefore plans to improve the lighting and music in its evening gate areas. Which of the following, if true, most seriously weakens the airline’s conclusion?
Answer: B
Brief Explanation: If complaints are driven by accumulated delays rather than night dissatisfaction, the conclusion is weakened.
14. A manufacturer switched to a supplier whose components cost 8 percent less. Six months later, the manufacturer’s warranty costs increased by 12 percent. The purchasing director argues that the supplier switch was financially unwise. Which of the following would be most useful to know in evaluating the director’s argument?
Answer: C
Brief Explanation: The argument depends on whether higher warranty costs resulted from the new components.
15. City officials claim that converting one downtown lane from automobile use to bus use will reduce congestion. They reason that the dedicated lane will make buses faster, causing many commuters to switch from cars to buses. Which of the following is an assumption required by the officials’ argument?
Answer: B
Brief Explanation: The congestion plan assumes lost car-lane capacity will not erase the benefit of mode switching.
16. A software company found that teams using its project-management tool completed projects 15 percent faster than teams not using the tool. The company concludes that adopting the tool causes teams to work more efficiently. Which of the following points to the most serious flaw in the reasoning?
Answer: A
Brief Explanation: The study may confuse correlation with causation if the teams were not comparable.
17. A chain of grocery stores introduced self-checkout machines in half of its locations. In those locations, average checkout time decreased, but customer satisfaction scores did not improve. The company concluded that customers do not value shorter checkout times. Which of the following, if true, most weakens the conclusion?
Answer: B
Brief Explanation: Satisfaction may have failed to rise because staffing cuts worsened other parts of the shopping experience.
18. A consulting firm advises a hospital to reduce emergency-room crowding by creating an online portal for nonurgent patients. Patients who use the portal would receive advice about whether to visit the emergency room, schedule a clinic appointment, or manage symptoms at home. Which of the following, if true, most strengthens the case for the plan?
Answer: A
Brief Explanation: The plan works best if nonurgent ER use is driven by uncertainty that the portal can reduce.
19. Economist: A proposed tax on vacant apartments will not significantly increase the supply of rental housing. Owners who leave apartments vacant usually do so because they plan to renovate or sell them, not because holding them empty is profitable. Which of the following, if true, most directly supports the economist’s argument?
Answer: A
Brief Explanation: This supports the claim that vacancy behavior is not mainly driven by profit from keeping units empty.
20. A study found that employees who take short walking breaks during the workday report higher creativity than employees who do not. Therefore, companies can increase creativity by requiring all employees to take three walking breaks each day. Which of the following, if true, most undermines the recommendation?
Answer: A
Brief Explanation: Autonomy may cause both walking breaks and creativity, undermining a universal requirement.
21. A museum plans to increase annual revenue by raising admission prices by 20 percent. The director argues that because last year’s visitors rated the museum highly, few will be deterred by the higher price. Which of the following would most strengthen the director’s argument?
Answer: B
Brief Explanation: If admission cost is minor relative to travel costs for many visitors, a price increase is less likely to deter them.
22. A city replaced many public trash bins with larger bins. Litter in the surrounding areas declined. City officials concluded that the larger bins caused the decline by reducing overflow. Which of the following, if true, provides the strongest alternative explanation?
Answer: B
Brief Explanation: More frequent street cleaning could explain reduced litter independently of bin size.
23. A nonprofit provides free tutoring to students whose grades are below average. After one year, tutored students improved more than the school average. The nonprofit claims that its tutoring program was effective. Which of the following, if true, most helps justify the nonprofit’s claim?
Answer: B
Brief Explanation: A matched comparison group helps separate tutoring effects from natural improvement among low-performing students.
Section 3: Data Insights
Questions: 20
Time: 45 Minutes
Instructions: This section measures your ability to interpret, analyze, and draw conclusions from data presented in various formats. Review the information carefully and select the most appropriate answer for each question.
Part A — Data Sufficiency
For each Data Sufficiency question, decide whether the data in the two statements are sufficient to answer the question asked.
Question 1 | Data Sufficiency
For positive integers m and n, is mn divisible by 36?
(1) m is divisible by 12, and n is divisible by 3.
(2) m is divisible by 9, and n is divisible by 4.
Answer: D
Explanation: To be divisible by 36, mn must contain 2² and 3². Statement (1) gives m a factor of 12 = 2² × 3 and n a factor of 3, so together mn has 2² × 3². Statement (2) gives m a factor of 9 = 3² and n a factor of 4 = 2², so it also guarantees divisibility by 36.
If k is a real number, is k greater than 0?
(1) k² > k
(2) k³ > k²
Answer: B
Explanation: Statement (1), k² > k, means k(k − 1) > 0, so k < 0 or k > 1; this does not answer the question consistently. Statement (2), k³ > k², means k²(k − 1) > 0. Since k² is positive unless k = 0, the inequality requires k > 1, so k is definitely greater than 0.
A bag contains r red chips and b blue chips, where r and b are positive integers. If two chips are selected without replacement, is the probability of selecting a red chip first and a blue chip second greater than ¼?
(1) r = b
(2) r = 2b
Answer: A
Explanation: If r = b, the probability is r/(2r) × r/(2r − 1) = r/[2(2r − 1)], which is always greater than ¼ for positive integer r. If r = 2b, the probability is (2b/3b) × (b/(3b − 1)) = 2b/[3(3b − 1)], which is greater than ¼ for some b values but not for all, so statement (2) alone is not sufficient.
If n is an integer, is n divisible by 6?
(1) n² is divisible by 12.
(2) n³ is divisible by 216.
Answer: D
Explanation: If n² is divisible by 12 = 2² × 3, then n must contain at least one factor 2 and one factor 3, so n is divisible by 6. If n³ is divisible by 216 = 6³ = 2³ × 3³, then n must contain at least one factor 2 and one factor 3, so n is divisible by 6.
If x and y are nonzero real numbers, is x/y greater than 1?
(1) x − y > 0
(2) xy > 0
Answer: E
Explanation: Statement (1) only says x > y, and statement (2) says x and y have the same sign. If both are positive, x > y gives x/y > 1. If both are negative, x > y can still give x/y < 1; for example, x = −2 and y = −3 gives x/y = ⅔. Therefore even together the statements do not give a definite answer.
Part B — Graphics Interpretation
Use the graphics to answer the questions. Choose the option that best completes the statement or answers the question.
The production line with the greatest estimated number of defective units is:
Answer: B
Explanation: Estimated defective units equal units shipped multiplied by defect rate. The estimates are approximately A: 4,200 × 1.8% = 75.6, B: 3,600 × 2.5% = 90, C: 5,100 × 1.2% = 61.2, D: 2,800 × 3.0% = 84, and E: 4,400 × 2.0% = 88. Line B is greatest.
If Line C’s defect rate increased from 1.2% to 1.7%, while all other quantities stayed the same, the total number of defective units across all five lines would increase by approximately:
Answer: C
Explanation: Line C's defect rate increases by 0.5 percentage points. With 5,100 units, that adds 0.005 × 5,100 = 25.5 defects. The original total defects are about 398.8, so the percentage increase is 25.5/398.8, or about 6.4%.
Using the straight line shown through the first and last data points, the predicted number of new subscriptions for an advertising spend of $95,000 is approximately:
Answer: C
Explanation: The line goes through about (40, 18) and (115, 42), where y is in hundreds. The slope is (42 − 18)/(115 − 40) = 24/75 = 0.32 hundred subscriptions per $1,000. At x = 95, predicted y = 18 + 0.32(95 − 40) = 35.6 hundreds, or 3,560 subscriptions.
Relative to the model y = 0.30x + 6, where x is advertising spend in thousands of dollars and y is new subscriptions in hundreds, which region has the largest positive residual?
Answer: D
Explanation: A positive residual means the actual point is above the model prediction. Using y = 0.30x + 6, the residuals for R2 through R6 are about 1.5, 2.0, 1.5, 3.0, and 1.5 hundreds. R5 has the largest positive residual.
Part C — Table Analysis
The table below summarizes six bids for a technology-services contract.
| Vendor | Setup Cost ($) | Monthly Fee ($) | Uptime (%) | Support Hours / Month | Implementation Days |
|---|---|---|---|---|---|
| A | 42,000 | 7,800 | 99.1 | 35 | 52 |
| B | 55,000 | 6,900 | 99.5 | 28 | 45 |
| C | 38,000 | 8,400 | 98.8 | 42 | 60 |
| D | 61,000 | 6,400 | 99.7 | 24 | 50 |
| E | 47,000 | 7,600 | 99.3 | 30 | 40 |
| F | 52,000 | 7,100 | 99.4 | 32 | 55 |
Among vendors with uptime of at least 99.3%, which vendor has the lowest total cost over 18 months?
Answer: B
Explanation: Only vendors B, D, E, and F have uptime of at least 99.3%. Their 18-month costs are B: 55,000 + 18(6,900) = 179,200; D: 61,000 + 18(6,400) = 176,200; E: 47,000 + 18(7,600) = 183,800; F: 52,000 + 18(7,100) = 179,800. Vendor D is lowest.
For each statement, select Yes if the statement is supported by the table; otherwise select No.
(a) Vendor E has the shortest implementation time and at least 30 support hours per month.
(b) Among vendors with monthly fees below $7,200, Vendor B has the lowest setup cost.
(c) The median uptime across all six vendors is greater than 99.3%.
Answer: (a) Yes; (b) No; (c) Yes
Explanation: (a) Vendor E has the shortest implementation time, 40 days, and exactly 30 support hours per month. (b) Among vendors with monthly fees below $7,200, vendors B, D, and F qualify; F has the lowest setup cost, not B. (c) The six uptimes sorted are 98.8, 99.1, 99.3, 99.4, 99.5, and 99.7; the median is (99.3 + 99.4)/2 = 99.35, which is greater than 99.3.
Define a vendor’s value index as [(Uptime − 98.0) × 100] divided by the monthly fee in thousands of dollars. Which vendor has the greatest value index?
Answer: C
Explanation: Compute [(Uptime − 98.0) × 100] divided by monthly fee in thousands. Vendor D has (99.7 − 98.0) × 100 / 6.4 = 170/6.4 = 26.56, higher than the corresponding values for the other listed vendors.
Which vendors satisfy both conditions: (i) setup cost is below $50,000 or implementation time is at most 45 days; and (ii) monthly fee is at most $7,600?
Answer: C
Explanation: Condition (i) is met if setup cost is below $50,000 or implementation time is at most 45 days. Condition (ii) requires monthly fee at most $7,600. Vendor B meets condition (i) through 45 days and has a $6,900 monthly fee; Vendor E meets both parts with $47,000 setup, 40 days, and $7,600 monthly fee. The other vendors fail at least one condition.
Part D — Two-Part Analysis
For each question, choose one option for each of the two columns requested.
A retailer sold 800 subscriptions. Standard subscriptions sold for $28 each, and premium subscriptions sold for $38 each. Total revenue was $26,600. Select the number of standard subscriptions and the number of premium subscriptions.
| Option | Standard subscriptions | Premium subscriptions |
|---|---|---|
| 320 | □ | □ |
| 360 | □ | □ |
| 380 | □ | □ |
| 400 | □ | □ |
| 420 | □ | □ |
| 480 | □ | □ |
Plan M costs $1,200 plus $0.08 per transaction. Plan N costs $900 plus $0.11 per transaction. Select the number of transactions at which the plans cost the same and the common cost.
| Option | Transactions | Common Cost ($) |
|---|---|---|
| 6,000 | □ | □ |
| 8,000 | □ | □ |
| 10,000 | □ | □ |
| 12,000 | □ | □ |
| 1,800 | □ | □ |
| 2,000 | □ | □ |
| 2,200 | □ | □ |
| 2,400 | □ | □ |
Two campaigns, X and Y, generated 50,000 total impressions. Campaign X converted 6% of impressions, Campaign Y converted 4%, and the combined conversion rate was 4.8%. Select the number of impressions from Campaign X and from Campaign Y.
| Option | Campaign X impressions | Campaign Y impressions |
|---|---|---|
| 15,000 | □ | □ |
| 20,000 | □ | □ |
| 25,000 | □ | □ |
| 30,000 | □ | □ |
| 35,000 | □ | □ |
A fulfillment center has existing weekly capacity of 1,850 units and forecast demand of 2,500 units. Each additional shift adds 180 units of capacity. Select the minimum number of additional shifts needed and the resulting unused capacity.
| Option | Additional Shifts | Unused Capacity |
|---|---|---|
| 3 | □ | □ |
| 4 | □ | □ |
| 5 | □ | □ |
| 30 | □ | □ |
| 70 | □ | □ |
| 110 | □ | □ |
| 250 | □ | □ |
Part E — Multi-Source Reasoning
Use the three source tabs below to answer Questions 18–20.
Tab 1 — Pilot City Metrics
| City | Active Sellers | Monthly Orders | Average Order Value ($) | Return Rate | On-time Delivery |
|---|---|---|---|---|---|
| Lima | 84 | 5,200 | 46 | 5.0% | 93% |
| Nairobi | 76 | 4,700 | 52 | 6.5% | 91% |
| Manila | 110 | 6,800 | 39 | 4.2% | 95% |
| Krakow | 65 | 3,900 | 58 | 3.8% | 94% |
Tab 2 — Scale-Up Rules
A city is eligible for scale-up only if all of the following are true: monthly orders are at least 4,500; on-time delivery is at least 93%; return rate is at most 5.5%; and contribution margin after returns is greater than $30,000.
Tab 3 — Contribution Margin Formula
Contribution margin after returns = 18% × [Monthly Orders × Average Order Value × (1 − Return Rate)] − $2 × Monthly Orders.
Which cities are eligible for scale-up under the rules?
Answer: C
Explanation: Check all scale-up rules. Lima and Manila meet the order, on-time delivery, return-rate, and contribution-margin thresholds. Nairobi fails the on-time delivery and return-rate thresholds, and Krakow has only 3,900 monthly orders, below the 4,500 minimum.
Before considering returns, which city has the greatest gross monthly order value?
Answer: C
Explanation: Gross monthly order value is monthly orders times average order value before returns. Lima: 5,200 × 46 = 239,200; Nairobi: 4,700 × 52 = 244,400; Manila: 6,800 × 39 = 265,200; Krakow: 3,900 × 58 = 226,200. Manila is greatest.
Suppose Nairobi’s on-time delivery increased to 93% and its return rate decreased to 5.5%, with monthly orders and average order value unchanged. Would Nairobi meet all scale-up rules?
Answer: A.
Explanation: With on-time delivery at 93% and return rate at 5.5%, Nairobi would meet the operating thresholds. Its contribution margin would be 18% × [4,700 × 52 × (1 − 0.055)] − 2 × 4,700 = about $32,172, which is greater than $30,000.