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# Over the last year, a certain company dismissed a large

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Director
Joined: 21 Dec 2009
Posts: 582

Kudos [?]: 841 [0], given: 20

Concentration: Entrepreneurship, Finance
Over the last year, a certain company dismissed a large [#permalink]

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29 Oct 2012, 01:29
00:00

Difficulty:

15% (low)

Question Stats:

86% (02:07) correct 14% (02:02) wrong based on 76 sessions

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Over the last year, a certain company dismissed a large number of employees in its marketing division and did not hire any replacements.
Although the other two divisions each added new employees during that period, the company employs significantly fewer people now than a year ago. Moreover, none of the employees who worked at the company last year has had a salary increase over the last year. Nevertheless, the company’s total costs for salaries have increased slightly.

The information above, if accurate, most strongly supports which of the following?

A. Many of the people who lost their jobs in the company’s marketing division were rehired by one of the other two divisions.
B. At least one of the two divisions that added employees last year employs more people than the marketing division does.
C. The total amount the company pays in salaries to employees in its marketing division is now lower than the total amount it pays in salaries to employees in either of the other two divisions.
D. The average salary paid to the new employees is higher than the average salary paid to those people who lost their jobs in the marketing division.
E. The company’s profits this year are slightly higher than they were last year.

That AvrgA > AvrgB, does not imply sumA > sumB.

Find below what i mean:
SumA = \$110
AvrA = \$11

ScenarioB: 2 workers; each receive \$50.
SumB: = \$100
AvrgB: = \$50

We can see that even though AvrgA > AvrgB, the sum of salaries for A is LESS than B.
With OA as
[Reveal] Spoiler:
D
would that not be controversial?
[Reveal] Spoiler: OA

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VP
Joined: 02 Jul 2012
Posts: 1216

Kudos [?]: 1691 [1], given: 116

Location: India
Concentration: Strategy
GMAT 1: 740 Q49 V42
GPA: 3.8
WE: Engineering (Energy and Utilities)
Re: certain company dismissed employees [#permalink]

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29 Oct 2012, 03:19
1
KUDOS
gmatbull wrote:
Over the last year, a certain company dismissed a large number of employees in its marketing division and did not hire any replacements.
Although the other two divisions each added new employees during that period, the company employs significantly fewer people now than a year ago. Moreover, none of the employees who worked at the company last year has had a salary increase over the last year. Nevertheless, the company’s total costs for salaries have increased slightly.

The information above, if accurate, most strongly supports which of the following?

A. Many of the people who lost their jobs in the company’s marketing division were rehired by one of the other two divisions.
B. At least one of the two divisions that added employees last year employs more people than the marketing division does.
C. The total amount the company pays in salaries to employees in its marketing division is now lower than the total amount it pays in salaries to employees in either of the other two divisions.
D. The average salary paid to the new employees is higher than the average salary paid to those people who lost their jobs in the marketing division.
E. The company’s profits this year are slightly higher than they were last year.

That AvrgA > AvrgB, does not imply sumA > sumB.

Find below what i mean:
SumA = \$110
AvrA = \$11

ScenarioB: 2 workers; each receive \$50.
SumB: = \$100
AvrgB: = \$50

We can see that even though AvrgA > AvrgB, the sum of salaries for A is LESS than B.
With OA as
[Reveal] Spoiler:
D
would that not be controversial?

We are given sum of A > sum of B.
We are also given no. of A < No. of B

So it is guaranteed that avg. of A > avg of B.

Illustration :

\$100 > 99\$

100 people < 101 people

1 > 0.98

Kudos Please... If my post helped.
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Kudos [?]: 1691 [1], given: 116

Director
Joined: 21 Dec 2009
Posts: 582

Kudos [?]: 841 [0], given: 20

Concentration: Entrepreneurship, Finance
Re: certain company dismissed employees [#permalink]

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29 Oct 2012, 05:47
MacFauz,
+1 for u...I got it now
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Re: certain company dismissed employees   [#permalink] 29 Oct 2012, 05:47
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