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Let say total number of employees = 100.

Worker = 40
Executive = 60

average annual income of all the employees = \(\frac{(salaryOfWorker * # Workers) + (SalaryOfExecutive * # Executives)}{TotalNumberOfEmployees}\)
Hence,

average annual income of all the employees = \(\frac{(40 * 390) + (60 * 420)}{100}\)
=> \(\frac{100 [(4 * 39) + (6*42)]}{100}\)

=> 156 + 252

=> 408

Ans: C
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.4*390 + .6*420
= 156 + 252
= 408(Option C)

Sent from my LG-H818 using GMAT Club Forum mobile app
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Bunuel
40% of the employees in a factory are workers. All the remaining employees are executives. The annual income of each worker is $390.The annual income of each executive is $420. What is the average annual income of all the employees in the factory together?

A. 390
B. 405
C. 408
D. 415
E. 420

No need for complex calculation:
let 100 total , 40 W , 60 E
40 * 390
60* 420 = 60 * (390 +30)
extra amount is 30 * 60 = 1800 .we have to divide in 100 student.So per student 18 ...Avg is 408.
So C
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390 420
x
60 : 40
3 : 2

x-390 = 3/2
420-x

2x-780=1260-3x
5x=2040
x=408
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40% workers, 60% executives. Ratio of workers : executives = 40 : 60 = 2:3
Weighted average income = (2*390 + 3*420)/(2+3) = 2040/5 = 408

Hence C answer
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Bunuel
40% of the employees in a factory are workers. All the remaining employees are executives. The annual income of each worker is $390.The annual income of each executive is $420. What is the average annual income of all the employees in the factory together?

A. 390
B. 405
C. 408
D. 415
E. 420

We can assume that there are 10 employees in the factory, so there are 4 workers and 6 executives. Thus, the total annual income of these 10 employees is (4 x 390) + (6 x 420) = 1560 + 2520 = $4080, and their average annual income is 4080/10 = $408.

Answer: C
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