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# If Charlie decides to cut the salary per employee at his

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Senior Manager
Joined: 10 Apr 2012
Posts: 276
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]

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09 Jul 2013, 01:39
5
00:00

Difficulty:

55% (hard)

Question Stats:

68% (02:17) correct 32% (02:20) wrong based on 136 sessions

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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
Intern
Joined: 25 Jun 2013
Posts: 14
GMAT 1: 710 Q49 V35
Re: If Charlie decides to cut the salary per employee at his [#permalink]

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09 Jul 2013, 02:00
2
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 / $5000 = 10 Hence the answer 'A' Math Expert Joined: 02 Sep 2009 Posts: 46167 Re: If Charlie decides to cut the salary per employee at his [#permalink] ### Show Tags 09 Jul 2013, 02:05 1 1 guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$to spend on salary. A. 10 B. 12 C. 15 D. 16 E. 20 Backsolving works perfectly for this problem. One can also use algebraic way: Say the average salary is x, then we would have: 100,000/(0.8x) - 100,000/x=5 --> x=5,000 --> 50,000/5,000=10. Answer: A. _________________ Retired Moderator Joined: 16 Jun 2012 Posts: 1079 Location: United States Re: If Charlie decides to cut the salary per employee at his [#permalink] ### Show Tags 09 Jul 2013, 02:19 2 guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ 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
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Re: If Charlie decides to cut the salary per employee at his [#permalink]

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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/x-100,000/(0.8x)=5 --> x=5,000 --> 50,000/5,000=10

The above is coming up -ve;

$$\frac{100,000}{(0.8x)} - \frac{100,000}{x}$$ = 5 ; x = 5000
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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.
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Joined: 06 Sep 2013
Posts: 1885
Concentration: Finance
Re: If Charlie decides to cut the salary per employee at his [#permalink]

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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
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Re: If Charlie decides to cut the salary per employee at his [#permalink]

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21 May 2017, 19:43
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Re: If Charlie decides to cut the salary per employee at his   [#permalink] 21 May 2017, 19:43
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