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    Question

    If a company decreases its number of workers by 50% and

    increases the remaining employees' salaries by 50%, resulting in a decrease of Rs. 25,000 in total salary costs, what was the initial expenditure?
    A Rs.250,000 Correct Answer Incorrect Answer
    B Rs.100,200 Correct Answer Incorrect Answer
    C Rs.150,000 Correct Answer Incorrect Answer
    D Rs.100,000 Correct Answer Incorrect Answer
    E none of these Correct Answer Incorrect Answer

    Solution

    ATQ, Assume '2c' is the original count of employees and '2d' their initial salary. New number of employees = 2c Ă— 0.5 = c. New salary per employee = 2d Ă— 1.50 = 3d. ATQ, Initial expenditure on salaries: 4cd = 4 Ă— 25,000 = Rs.100,000

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