Question

A Firm, at the time of inflation reduced the staff in the ratio 12 : 5, and the average salary per employee is increased in the ratio 9 : 17. By doing so, the Firm saved Rs. 46,000. What was the initial expenditure (in Rs) of the Firm?

• A. Rs. 216,000
• B. Rs. 90,000
• C. Rs. 250,000
• D. Rs. 190, 000

Answer 1

Answer:

A. Rs. 216,000

initial number of employee be = 12x final number of employee = 5x Total initial salary = 12x × 9 = 108x total final salary = 17 × 5x = 85x 108x – 85x = 46,000 ⇒ 23x = 46,000 ⇒ x = 2,000 The initial expenditure of firm = 108 × 2000 = Rs. 216,000