BTGmoderatorDC wrote:A retail store employs only clerks and managers and the clerks earn $11.50/hour while the managers earn $19/hour. Last year, the store had 20 employees and its average employee earned $13/hour. Thus far this year, the store has hired 4 clerks and promoted some of last year's clerks to manager. If the store has undergone no other personnel changes and the average employee now earns $14/hour, how many clerks were promoted to manager?
A. 2
B. 4
C. 6
D. 7
E. 8
Last year's payroll = (number of employees)(average hourly wage) = 20*13 = 260.
This year 4 clerks are hired, increasing the number of employees to 24.
Since the average hourly wage this year = 14, we get:
This year's payroll = (number of employees)(average hourly wage) = 24*14 = 336.
Payroll increase between this year and last year = 336-260 = 76.
Since clerks earn $11.50 per hour, the total wages for the 4 newly hired clerks = (4)(11.5) = 46.
Amount earned by the promoted employees = (total payroll increase) - (total wages for the 4 newly hired clerks) = 76-46 = 30.
Since a promoted employee's hourly wage increases from $11.50 to $19 -- an increase of $7.50 per hour -- the number of promoted employees = 30/7.5 = 4.
The correct answer is
B.
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