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Shipping department salaries

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by GmatGreen » Thu Feb 13, 2014 10:48 am
The average (arithmetic mean) salary of 15 people in the shipping department at a certain firm is $20,000. The salary of 5 of the employees is $25,000 each and the salary of 4 of the employees is $16,000 each. What is the average salary of the remaining employees?

A) $19,250

B) $18,500

C) $18,000

D) $15,850

E) $12,300
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Source: — Problem Solving |

by Patrick_GMATFix » Thu Feb 13, 2014 11:02 am
In general when a GMAT question asks about average, you should think about total. 15 ppl average $20k, so altogether they must earn $300k. We're given the tools to find how much the first 9 employees earn total (5*$25k + 4*$16k). Subtracting that from the $300k will give us the total of the remaining employees. Dividing that total by the number of remaining employees will yield the average salary of the remaining employees.

The full solution below is taken from the GMATFix App.

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by [email protected] » Thu Feb 13, 2014 12:24 pm
Hi GmatGreen,

The average formula is one of a variety of standard formulas that the GMAT will expect you to know and use. Sometimes, average formula questions include lots of variables; in this question, we're given lots of numbers to work with and then we're asked to solve for one variable. Here's what it takes to answer the question:

We're told that the average salary of 15 people = $20,000

Sum/15 = $20,000

The Sum of the 15 people = 15($20,000) = $300,000

Then we're told the salary of 5 people = $25,000 each and the salary of 4 of the people = $16,000 each

5($25,000) = $125,000
4($16,000) = $64,000

Now we know that those 9 people account for a total of $189,000 of salary

The question asks for the average salary of the remaining employees.
We know that there are 6 employees remaining
We also know that the remaining money = $300,000 - $189,000 = $111,000

$111,000/6 = $18,500

Final Answer: B

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Rich
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