This year, MBB Consulting fired 9% of its employees and left remaining employee salaries unchanged.
This year, MBB Consulting fired 9% of its employees and left remaining employee salaries unchanged. Sally, a first-year post-MBA consultant, noticed that that the average (arithmetic mean) of employee salaries at MBB was 10% more after the employee headcount reduction than before. The total salary pool allocated to employees after headcount reduction is what percent of that before the headcount reduction?
Answer/Solution
100.1%
Steps/Work
100 employees getting 1000$ avg, so total salary for 100 ppl = 100000
9% reduction in employees lead to 91 employees and a salary increase of 10% of previous avg salary
Thus the new avg salary is = 10%(1000)+1000 = 1100
so total salary of 91 employees is 91*1100 = 100100
Now the new salary is more than previous salary by x%. x = (100100/100000)*100 = 100.1%
So the Answer is B
9% reduction in employees lead to 91 employees and a salary increase of 10% of previous avg salary
Thus the new avg salary is = 10%(1000)+1000 = 1100
so total salary of 91 employees is 91*1100 = 100100
Now the new salary is more than previous salary by x%. x = (100100/100000)*100 = 100.1%
So the Answer is B