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Let original number of employees = 10.On July 1 of last year, total employees at company E was decreased by 10%. Without any change in the salaries of the remaining employees, the average employee salary was 10% more after the decrease in the number of employees than before the decrease. The total of the combined salaries of all the employees at Company E after July 1 last year was what percent of that before July 1 of last year?
90
99
100
101
110
In general, if it is a % question, we take 100. But here you have made your calculation taking 10 as original employees. By taking 100, I am also getting answer as 110.GMATGuruNY wrote:Let original number of employees = 10.On July 1 of last year, total employees at company E was decreased by 10%. Without any change in the salaries of the remaining employees, the average employee salary was 10% more after the decrease in the number of employees than before the decrease. The total of the combined salaries of all the employees at Company E after July 1 last year was what percent of that before July 1 of last year?
90
99
100
101
110
Let original average salary = 10.
Original combined salaries = number*average = 10*10 = 100.
Number of employees decreased by 10% = 9.
Average salary increased by 10% = 11.
New combined salaries = number*average = 9*11 = 99.
New combined salaries/Original combined salaries = 99/100 = 99%.
The correct answer is B.
I chose 10 for the number of employees and 10 for the average salary so that the combined salaries would be 100.nimish wrote:In general, if it is a % question, we take 100. But here you have made your calculation taking 10 as original employees. By taking 100, I am also getting answer as 110.GMATGuruNY wrote:Let original number of employees = 10.On July 1 of last year, total employees at company E was decreased by 10%. Without any change in the salaries of the remaining employees, the average employee salary was 10% more after the decrease in the number of employees than before the decrease. The total of the combined salaries of all the employees at Company E after July 1 last year was what percent of that before July 1 of last year?
90
99
100
101
110
Let original average salary = 10.
Original combined salaries = number*average = 10*10 = 100.
Number of employees decreased by 10% = 9.
Average salary increased by 10% = 11.
New combined salaries = number*average = 9*11 = 99.
New combined salaries/Original combined salaries = 99/100 = 99%.
The correct answer is B.
What is the reason for taking 10 instead of 100?
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