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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: 267
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
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65% (02:33) correct 35% (02:38) wrong based on 170 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
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1
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 / $5000 = 10 Hence the answer 'A' Math Expert Joined: 02 Sep 2009 Posts: 56261 Re: If Charlie decides to cut the salary per employee at his [#permalink] Show Tags 09 Jul 2013, 02:05 1 1 guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ than can be hired at original salary. How many individuals can be hired by Charlie at the original salary if he has 50,000$to spend on salary. A. 10 B. 12 C. 15 D. 16 E. 20 Backsolving works perfectly for this problem. One can also use algebraic way: Say the average salary is x, then we would have: 100,000/(0.8x) - 100,000/x=5 --> x=5,000 --> 50,000/5,000=10. Answer: A. _________________ Retired Moderator Joined: 16 Jun 2012 Posts: 1003 Location: United States Re: If Charlie decides to cut the salary per employee at his [#permalink] Show Tags 09 Jul 2013, 02:19 4 guerrero25 wrote: If Charlie decides to cut the salary per employee at his company by 20%, five more employees can be hired for 100,000$ 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: 1787 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/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 _________________ 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: 1647 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: 2823 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.

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