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.

please help me out to solve this.

Ok. Lets take it step by step!

Lets assume the

original work force = 1000 ppl.Therefore, o

riginal wage bill = 1000 X Original Wage per personNow since downsizing was 30%

New workforce = 700 (1000-300)Again,

New wage bill for the company = 700 X New Wage per personBut this is given as $ 4,90,000

So. $4,90,000 = 700 X New Wage per person

New Wage per person = $700Now 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 = $625But wait, the question asks for the wage Original Wage bill

Therefore the ans is 1000 X 625 =

$6,25,000Confirm -> 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