Author 
Message 
TAGS:

Hide Tags

Senior Manager
Joined: 10 Apr 2012
Posts: 275
Location: United States
Concentration: Technology, Other
GPA: 2.44
WE: Project Management (Telecommunications)

If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
09 Jul 2013, 01:39
Question Stats:
66% (02:33) correct 34% (02:39) wrong based on 164 sessions
HideShow timer Statistics
If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$ to spend on salary. A. 10 B. 12 C. 15 D. 16 E. 20
Official Answer and Stats are available only to registered users. Register/ Login.



Intern
Joined: 25 Jun 2013
Posts: 14

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
09 Jul 2013, 02:00
Let original salary be 'X' No. of people that can be hired on original salary using $100,000 = $100,000 / X No. of people that can be hired on 20% less salary using $100,000 = $100,000 / (1 20%)X = $100,000 / 0.8X Given: ($100,000 / X)  ($100,000 / 0.8X) = 5 Solve for X=> X = 5000 No. of people that can be hired on original salary using $50,000 = $50,000 / X = $50,000 / $5000 = 10 Hence the answer 'A'



Math Expert
Joined: 02 Sep 2009
Posts: 49438

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
09 Jul 2013, 02:05
guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$ to spend on salary.
A. 10 B. 12 C. 15 D. 16 E. 20 Backsolving works perfectly for this problem. One can also use algebraic way:Say the average salary is x, then we would have: 100,000/(0.8x)  100,000/x=5 > x=5,000 > 50,000/5,000=10. Answer: A.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Retired Moderator
Joined: 16 Jun 2012
Posts: 1059
Location: United States

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
09 Jul 2013, 02:19
guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$ to spend on salary.
A. 10 B. 12 C. 15 D. 16 E. 20 Original salary = X New salary = 0.8X (because less than 20%) Original number of employee: N New number of employee: N +5 Total salary = 100,000 *equation 1: \((N + 5)*0.8X = 100,000\) *equation 2: \(N*X = 100,000\) X = 5000 If total salary = 50,000 ==> Number of employees = 50,000/5000 = 10 Hence, A
_________________
Please +1 KUDO if my post helps. Thank you.
"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."
Chris Bangle  Former BMW Chief of Design.



SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1834
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
Updated on: 06 Mar 2014, 00:19
One can also use algebraic way: Say the average salary is x, then we would have: 100,000/x100,000/(0.8x)=5 > x=5,000 > 50,000/5,000=10The above is coming up ve; \(\frac{100,000}{(0.8x)}  \frac{100,000}{x}\) = 5 ; x = 5000
_________________
Kindly press "+1 Kudos" to appreciate
Originally posted by PareshGmat on 23 Oct 2013, 02:13.
Last edited by PareshGmat on 06 Mar 2014, 00:19, edited 1 time in total.



SVP
Joined: 06 Sep 2013
Posts: 1800
Concentration: Finance

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
12 Feb 2014, 07:13
Backsolving works perfectly for this problem.
Here’s the deal. We know that 4/5r * q+5 = 100. Now, we r is now half (50) instead of 100. Therefore, to backsolve we need to multiply each answer choice by 2. But here’s another thing, it must be divisible by 100 since q is the number of people and must be an integer. The only answer choice that when doubled is a multiple of 100 is A. Let's check 4/5*5 * 25 = 4*25= 100.
A it is!
Kudos if it helps Cheers J



Target Test Prep Representative
Status: Head GMAT Instructor
Affiliations: Target Test Prep
Joined: 04 Mar 2011
Posts: 2835

Re: If Charlie decides to cut the salary per employee at his
[#permalink]
Show Tags
18 Aug 2018, 19:23
guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$ to spend on salary.
A. 10 B. 12 C. 15 D. 16 E. 20 We can let s = the original salary per employee and n = the number of new employees that can be hired at the original salary. . So we have: ns = 100,000 Now, if we cut the salary by 20%, the new salary per employee is 0.8s. If we can hire 5 additional new employees at that new lowered salary, then we can hire (n + 5) new employees. Thus, we have: (n + 5)(0.8s) = 100,000 Expanding the second equation, we have: 0.8ns + 4s = 100,000 Since ns = 100,000, we have: 0.8(100,000) + 4s = 100,000 80,000 + 4s = 100,000 4s = 20,000 s = 5,000 Since the original salary per employee is $5,000, we see that Charlie can hire 10 employees for $50,000. Answer: A
_________________
Jeffery Miller
Head of GMAT Instruction
GMAT Quant SelfStudy Course
500+ lessons 3000+ practice problems 800+ HD solutions




Re: If Charlie decides to cut the salary per employee at his &nbs
[#permalink]
18 Aug 2018, 19:23






