Ratio problem : PS Archive
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# Ratio problem

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Intern
Joined: 26 Jan 2011
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25 Aug 2011, 12:03
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100% (05:14) correct 0% (00:00) wrong based on 1 sessions

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Question:

As part of reconstructing excercise,a company reduced its work force by 30%.However,to motivate the remaining employees,a wage hike was given,The wages,on an average,increased in the ratio of 25:28.If the present wage bill per month is 4,90,000 what was the wage bill prior to the downsizing followed by the rise.

Intern
Status: GMAT - A logic game! Enjoy it!!
Joined: 19 Apr 2011
Posts: 18
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Kudos [?]: 12 [1] , given: 4

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25 Aug 2011, 12:26
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wontgiveup wrote:
Question:

As part of reconstructing excercise,a company reduced its work force by 30%.However,to motivate the remaining employees,a wage hike was given,The wages,on an average,increased in the ratio of 25:28.If the present wage bill per month is 4,90,000 what was the wage bill prior to the downsizing followed by the rise.

Ok. Lets take it step by step!

Lets assume the original work force = 1000 ppl.
Therefore, original wage bill = 1000 X Original Wage per person

Now since downsizing was 30%
New workforce = 700 (1000-300)
Again, New wage bill for the company = 700 X New Wage per person

But this is given as $4,90,000 So.$4,90,000 = 700 X New Wage per person
New Wage per person = $700 Now the wages increased in the ratio of 25:28, which simply put means the ratio of the Old Wage to the New Wage is 25:28 => New/Old =25/28 => Old = 25/28(700) [Substituting the value of New Wage we just calculated] =>Old Wage per person =$625

But wait, the question asks for the wage Original Wage bill
Therefore the ans is 1000 X 625 =$6,25,000 Confirm -> The ratio of the Old and New Wages ->$625/$700 = 25/28 & The New Wage bill ->$700 X 700 ppl = 4,90,000
Both are correct as per the question stem! Score !!!

Hope it helped
Senior Manager
Status: mba here i come!
Joined: 07 Aug 2011
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26 Aug 2011, 12:56
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ration of wage before:after = 25x : 28x
28x = 490,000 OR x = 17,500

wage before the hike = 25x
wage before layoffs = $$\frac{25x}{0.7}$$ (25x is 70% of wage before layoffs)
= $$\frac{25*17500}{0.7}$$

625,000
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Director
Joined: 01 Feb 2011
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26 Aug 2011, 20:37
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Workers Wage

W 25x

(70W)/100 28X

W*25X = ?

we were given current overall wage = 490000

=>((70W)/100)*28X = 490000
=> WX = 100000/4

=> wage bill prior to downsizing = 25WX = 625000
Re: Ratio problem   [#permalink] 26 Aug 2011, 20:37
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