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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## Percent of salaries ##### This topic has 1 expert reply and 2 member replies ## Percent of salaries On July 1 of last year, the total number of employees at Company E was decreased by 10 percent. Without any change in the salaries of the remaining employees, the average employee salary was 10 percent more after the decrease in 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 last year? 90% 99% 100% 101% 110% Thanks! Master | Next Rank: 500 Posts Joined 11 Jun 2010 Posted: 423 messages Followed by: 2 members Upvotes: 86 Target GMAT Score: 720+ # of employees prior to July 1: X # of employees after July 1: 0.9X Avg Salary prior to July1: Y Avg Salary after July1: 1.1Y Total salary prior to July 1: XY Total Salary after July 1: 0.9X * 1.1Y = 0.99XY Ratio = 0.99XY/XY = 99% Ans B ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15361 messages Followed by: 1866 members Upvotes: 13060 GMAT Score: 790 Rudy414 wrote: On July 1 of last year, the total number of employees at Company E was decreased by 10 percent. Without any change in the salaries of the remaining employees, the average employee salary was 10 percent more after the decrease in 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 last year? 90% 99% 100% 101% 110% Before July 1: Let the number of employees = 10. Let the average salary = 10. Old total payroll = 10*10 = 100. After July 1: 10% fewer employees = 10 - .1(10) = 9. Average salary increased by 10% = 10 + .1(10) = 11. New total payroll = 9*11 = 99. Thus: (new total payroll)/(old total payroll) = 99/100 = 99%. The correct answer is B. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. Senior | Next Rank: 100 Posts Joined 12 Mar 2013 Posted: 44 messages Upvotes: 3 before A= Sum /n ----> sum = An after layoff of 10% 1.1A = (Sum -x)/ .9n -----> sum-x = 1.1A * .9n want (sum-x) / sum (1.1A * .9n) /(An) * 100 = 99% • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • FREE GMAT Exam Know how you'd score today for$0

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