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by bobdylan » Thu Jun 14, 2012 4:37 am
On July 1 of last year, the total number of employees at company E was decreased by 10%. Without any changes in the salaries of remaining employees, the average ( mean) 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 of the employees at company E after july 1 last year was what percent of that before july 1 last year?
a. 90%
b. 99%
c. 100%
d. 101%
e. 110%
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by Anurag@Gurome » Thu Jun 14, 2012 4:45 am
bobdylan wrote:On July 1 of last year, the total number of employees at company E was decreased by 10%. Without any changes in the salaries of remaining employees, the average ( mean) 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 of the employees at company E after july 1 last year was what percent of that before july 1 last year?
a. 90%
b. 99%
c. 100%
d. 101%
e. 110%
Let us assume that the no. of employees before July 1 = N
Then no. of employees after July 1 = N - 10% of N = N(1 - 0.1) = 0.9N

Let the average salary before July 1 = S
Then average salary after July 1 = S + 10% of S = S(1 + 0.1) = 1.1S

Total salary before July 1 = NS
Total salary after July 1 = 0.9 * 1.1 * NS = 0.99NS, which implies (0.99NS)/(NS) * 100 = [spoiler]99%[/spoiler]

The correct answer is B.
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by GMATGuruNY » Thu Jun 14, 2012 6:10 am
bobdylan wrote:On July 1 of last year, the total number of employees at company E was decreased by 10%. Without any changes in the salaries of remaining employees, the average ( mean) 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 of the employees at company E after july 1 last year was what percent of that before july 1 last year?
a. 90%
b. 99%
c. 100%
d. 101%
e. 110%
Before July 1:
Let the number of employees = 10 and the original salary per employee = 10.
Sum = 10*10 = 100.

After July 1:
The new number of employees = 9 (10% fewer than before July 1).
The new salary per employee = 11 (10% more than before July 1).
New sum = 9*11 = 99, which is 99% of the old sum of 100.

The correct answer is B.
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