Last year the total number of 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 number of employees than before the decrease. The total of the combined salaries of all the employees at Company E after the layouts was what percent of that before the layouts? 90% 99% 100% 101% 110%

arellalu wrote:Last year the total number of 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 number of employees than before the decrease. The total of the combined salaries of all the employees at Company E after the layouts was what percent of that before the layouts? 90% 99% 100% 101% 110% Let the original number of employees = 10. Let the original average salary = 10. Sum of the salaries = number*average = 10*10 = 100. Number of employees decreased by 10% = 9. Average salary increased by 10% = 11. New sum = number*average = 9*11 = 99. New sum/Original sum = 99/100 = 99%. The correct answer is B.

An algebraic approach: Let the current employees at Company E be x and let the salary of each employee be d. Last year, the amount of employees was 0.9(x) or x - 0.10(x) due to a 10% decrease. After the decrease, we know that the average salary of each employee will be 1.10d because of the 10% increase. Total combined salaries of all employees at company E after layout = 1.10d(0.9x) = 0.99dx, which is 99% of the combined salaries of all the employees before the layouts. Choose B.

Before layoff employee # : 100 Salary : 100 After layoff employee # : 90 Salary (10% average increase) : 90 + 9 = 99 ( 99 is 99% of 100) Ans: B

Let n be the # of employees and a be avg salary of each employee (before the layoffs) Therefore, total salary amount before layoff = a*n - (1) After layoff, 10% decrease in employees = 9n/10 10% increase in avg salary = 11a/10 total salary amount after layoff = 99(a*n)/100 - (2) Hence, required percentage = (2)/(1) = [99(a*n)/100]/(a*n) = 99% Answer B