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# A company has 15 managers and 75 associates. The 15 managers have an

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Math Expert
Joined: 02 Sep 2009
Posts: 43348

Kudos [?]: 139663 [0], given: 12794

A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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24 Feb 2015, 06:41
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15% (low)

Question Stats:

85% (01:12) correct 15% (01:34) wrong based on 99 sessions

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A company has 15 managers and 75 associates. The 15 managers have an average salary of $120,000. The 75 associates have an average salary of$30,000. What is the average salary for the company?

A. $35,000 B.$45,000
C. $55,000 D.$65,000
E. $75,000 Kudos for a correct solution. [Reveal] Spoiler: OA _________________ Kudos [?]: 139663 [0], given: 12794 Math Expert Joined: 02 Aug 2009 Posts: 5536 Kudos [?]: 6444 [1], given: 122 Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 24 Feb 2015, 08:35 1 This post received KUDOS Expert's post Bunuel wrote: A company has 15 managers and 75 associates. The 15 managers have an average salary of$120,000. The 75 associates have an average salary of $30,000. What is the average salary for the company? A.$35,000
B. $45,000 C.$55,000
D. $65,000 E.$75,000

Kudos for a correct solution.

these questions can be done in two ways ..
1) average formula:
(15*120000+75*30000)/(15+75)=45000
2) weighted average and ratio method:
the two numbers are in ratio 15:75=1:5.... so the difference of average will be in ratio 5:1..
difference in avg salaries of two groups=120000-30000=90000...
now the average will be closer to higher number,75 , by 1/6 of 90000 =90000*1/6=15000..
so avg = 30000+15000=45000
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Kudos [?]: 6444 [1], given: 122

Manager
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Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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24 Feb 2015, 09:07
Another method is to get ratios
Say 30000=a and
We know the # of people are in 1:5 ratio
Average=(4a*1+a*5)/6= 9a/6=1.5 a=45000

Answer is B. $45,000 Kudos [?]: 77 [0], given: 39 Manager Joined: 18 Aug 2014 Posts: 129 Kudos [?]: 80 [1], given: 36 Location: Hong Kong Schools: Mannheim Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 24 Feb 2015, 09:55 1 This post received KUDOS I solved this using average formula : (15*120,000 + 75 * 30,000) / 90 = 45, 000 Answer B However, with this approach I needed around 2 minutes. Is there a faster way? Kudos [?]: 80 [1], given: 36 Manager Joined: 13 Dec 2013 Posts: 59 Kudos [?]: 38 [1], given: 34 Location: Iran (Islamic Republic of) Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 24 Feb 2015, 12:52 1 This post received KUDOS Well, the answer is obviously B , BUT in order to solve the question faster and calculate easier let's try this approach : AS you know some countries some times eliminate zeros in their currency because of high inflation in their countries , so we can apply this approach in order to solve the problem in a faster way lets eliminate 3 zero's from the big numbers , so we have 120$ instead of 120,000 $and also 30$ instead of 30,000$we are told that company has 15 managers with average salary of 120$ .... so total amount of salary will be 15*120= 1800$Also, we are told that the company has 75 associates with average salary of 30$ .... so total amount of salary for those guys will be 30*75= 2250$Final stage : for calculating the total average salary we have the sum of two groups of people divided by the total number of people : ( 1800+2250) / (75+15) = 4050/90 OR : we can cancel out zero from denominator and numerator , so we have : 405/9 = 45 !!!!! by viewing to the answers ONLY option B fits ..... Took less than One minute.... Best Regards, Kudos [?]: 38 [1], given: 34 SVP Status: The Best Or Nothing Joined: 27 Dec 2012 Posts: 1844 Kudos [?]: 2866 [0], given: 193 Location: India Concentration: General Management, Technology WE: Information Technology (Computer Software) Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 24 Feb 2015, 19:18 Answer = B = 45000 Average salary $$= \frac{15*120000 + 75*30000}{15+75} = \frac{15*120000}{90} + \frac{75*30000}{90} = 20000 + 25000 = 45000$$ _________________ Kindly press "+1 Kudos" to appreciate Kudos [?]: 2866 [0], given: 193 EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 10724 Kudos [?]: 3780 [0], given: 173 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: 340 Q170 V170 Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 24 Feb 2015, 22:31 mehrdadtaheri92 wrote: Well, the answer is obviously B , BUT in order to solve the question faster and calculate easier let's try this approach : AS you know some countries some times eliminate zeros in their currency because of high inflation in their countries , so we can apply this approach in order to solve the problem in a faster way lets eliminate 3 zero's from the big numbers , so we have 120$ instead of 120,000 $and also 30$ instead of 30,000$we are told that company has 15 managers with average salary of 120$ .... so total amount of salary will be 15*120= 1800$Also, we are told that the company has 75 associates with average salary of 30$ .... so total amount of salary for those guys will be 30*75= 2250$Final stage : for calculating the total average salary we have the sum of two groups of people divided by the total number of people : ( 1800+2250) / (75+15) = 4050/90 OR : we can cancel out zero from denominator and numerator , so we have : 405/9 = 45 !!!!! by viewing to the answers ONLY option B fits ..... Took less than One minute.... Best Regards, Hi mehrdadtaheri92, I like your thinking - that's a clever way to eliminate some of the "excess math" and make the calculations easier. To that end, what would have happened if you had eliminated ALL of the 0s... and used 12 and 3 (instead of 120 and 30)? GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
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Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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28 Feb 2015, 06:36
1
KUDOS
Bunuel wrote:
A company has 15 managers and 75 associates. The 15 managers have an average salary of $120,000. The 75 associates have an average salary of$30,000. What is the average salary for the company?

A. $35,000 B.$45,000
C. $55,000 D.$65,000
E. $75,000 Kudos for a correct solution. Let us ignore the last 3 zeros since they're common for all terms. Total salary of 15 managers = 15 * 120 = 1800 Total salary of 75 associates = 75 * 30 = 2250 Total salary of company = 1800 + 2250 = 4050 Average salary of 90 employees = 4050/90 = 45 Let us put back the 3 zeros again = 45000 Hence option B. -- Optimus Prep's GMAT On Demand course for only$299 covers all verbal and quant. concepts in detail. Visit the following link to get your 7 days free trial account: http://www.optimus-prep.com/gmat-on-demand-course

Kudos [?]: 565 [1], given: 23

Math Expert
Joined: 02 Sep 2009
Posts: 43348

Kudos [?]: 139663 [0], given: 12794

Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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02 Mar 2015, 05:33
Bunuel wrote:
A company has 15 managers and 75 associates. The 15 managers have an average salary of $120,000. The 75 associates have an average salary of$30,000. What is the average salary for the company?

A. $35,000 B.$45,000
C. $55,000 D.$65,000
E. $75,000 Kudos for a correct solution. MAGOOSH OFFICIAL SOLUTION: The 15 managers have an average salary of$120,000. The sum of their salaries is:
sum = (average)*(number of salaries) = $120,000*15 =$1,800,000

The 75 associates have an average salary of $30,000. The sum of their salaries is: sum = (average)*(number of salaries) =$30,000*75 = $2,250,000 When we add those two sums, we get the total payroll of all 90 employees.$1,800,000 + $2,250,000 =$4,050,000

So, we have 90 employees, and together they earn $4,050,000, so the average is average =$4,050,000 ÷90 = $45,000 Answer: B. _________________ Kudos [?]: 139663 [0], given: 12794 Manager Joined: 13 Dec 2013 Posts: 59 Kudos [?]: 38 [0], given: 34 Location: Iran (Islamic Republic of) A company has 15 managers and 75 associates. The 15 managers have an [#permalink] ### Show Tags 02 Mar 2015, 13:28 EMPOWERgmatRichC wrote: mehrdadtaheri92 wrote: Well, the answer is obviously B , BUT in order to solve the question faster and calculate easier let's try this approach : AS you know some countries some times eliminate zeros in their currency because of high inflation in their countries , so we can apply this approach in order to solve the problem in a faster way lets eliminate 3 zero's from the big numbers , so we have 120$ instead of 120,000 $and also 30$ instead of 30,000$we are told that company has 15 managers with average salary of 120$ .... so total amount of salary will be 15*120= 1800$Also, we are told that the company has 75 associates with average salary of 30$ .... so total amount of salary for those guys will be 30*75= 2250\$

Final stage : for calculating the total average salary we have the sum of two groups of people divided by the total number of people : ( 1800+2250) / (75+15) = 4050/90 OR : we can cancel out

zero from denominator and numerator , so we have : 405/9 = 45 !!!!! by viewing to the answers ONLY option B fits .....

Took less than One minute....

Best Regards,

I like your thinking - that's a clever way to eliminate some of the "excess math" and make the calculations easier. To that end, what would have happened if you had eliminated ALL of the 0s... and used 12 and 3 (instead of 120 and 30)?

GMAT assassins aren't born, they're made,
Rich

Dear Friend,

You are right of course , But dear friend Notice that eliminating 3 zeros can bring us simplicity enough to solve question fast.

So, I over looked to eliminate zero.... But , you are right my friend, Thanks...

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Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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07 Mar 2015, 09:47
LaxAvenger wrote:
I solved this using average formula :

(15*120,000 + 75 * 30,000) / 90

= 45, 000

However, with this approach I needed around 2 minutes. Is there a faster way?

hi LaxAvenger ,

Check out the below link. It might help.

http://www.veritasprep.com/blog/2011/03 ... -averages/

Thanks!

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Re: A company has 15 managers and 75 associates. The 15 managers have an [#permalink]

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28 Dec 2017, 03:11
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Re: A company has 15 managers and 75 associates. The 15 managers have an   [#permalink] 28 Dec 2017, 03:11
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