What is the average salary at Company A?

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What is the average salary at Company A?

(1) The average salary at Company A and Company B combined is $88,000.
(2) The average salary at Company B is $80,000.

What's the best way to verify which statement is sufficient? Can any experts help?

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by GMATGuruNY » Fri Nov 17, 2017 6:35 am
To make the math easier, ignore the last three 0's in each amount, as follows:
What is the average salary at Company A?

(1) The average salary at Company A and Company B combined is $88.
(2) The average salary at Company B is $80.
Statements combined:
Case 1: 1 employee at A and 1 employee at B, for a total of 2 employees
Sum of the salaries for A and B together = (number of employees)(average salary) = 2*88 = 176.
Sum of the salaries at B alone = (number of employees)(average salary) = (1)(80) = 80.
Salary for the 1 employee at A = (sum of the salaries for A and B together) - (sum of the salaries at B alone) = 176-80 = 96.

Case 2: 1 employee at A and 2 employee at B, for a total of 3 employees
Sum of the salaries for A and B together = (number of employees)(average salary) = 3*88 = 264.
Sum of the salaries at B alone = (number of employees)(average salary) = (2)(80) = 160.
Salary for the 1 employee at A = (sum of the salaries for A and B together) - (sum of the salaries at B alone) = 264-160 = 104.

Since the salary at A can be different values, the two statements combined are INSUFFICIENT.

The correct answer is E.
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