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Total salary of the original 12 employees = 12 × 60,000 = 720,000 Let the salary of the CEO be x. New average salary with the CEO included is 65,000: 720,000 + x = 65,000 × 13 720,000 + x = 845,000 x = 125,000 Now, if an employee with a 50,000 salary leaves: New total salary = 845,000 - 50,000 = 795,000 Remaining number of people = 12 (11 employees + CEO). New average salary: = 795,000/12 = 66,250
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