On July 1 of last year, total employees at company E was decreased by 10 percent. Without any change in the salaries of

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On July 1 of last year, total employees at company E was decreased by 10 percent. Without any change in the salaries of the remaining employees, the average (arithmetic mean) employee salary was 10 percent 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 last year?

A. 90%
B. 99%
C. 100%
D. 101%
E. 110%


OA B

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BTGmoderatorDC wrote:
Mon May 23, 2022 7:42 pm
On July 1 of last year, total employees at company E was decreased by 10 percent. Without any change in the salaries of the remaining employees, the average (arithmetic mean) employee salary was 10 percent 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 last year?

A. 90%
B. 99%
C. 100%
D. 101%
E. 110%


OA B

Source: GMAT Prep
Choose some nice values that satisfy the given information.

BEFORE July 1
Let's say that there were 10 employees
And let's say the average salary was $10.
TOTAL payroll = (10)($10) =$100

Number of employees decreases by 10%
Average salary increases by 10%
So....

AFTER July 1
There are 9 employees
Average salary is $11.
TOTAL payroll = (9)($11) =$99

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?

99/100 = [spoiler]99%[/spoiler]

Answer: B
Brent Hanneson - Creator of GMATPrepNow.com
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