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

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Director
Joined: 21 Dec 2009
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Concentration: Entrepreneurship, Finance
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Over the last year, a certain company dismissed a large [#permalink]

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29 Oct 2012, 01:29
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Difficulty:

5% (low)

Question Stats:

88% (03:10) correct 12% (01:57) wrong based on 66 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:
ScenarioA: 11 workers; 10 receive $1 each while 1 receives$100;
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 _________________ KUDOS me if you feel my contribution has helped you. If you have any questions you can ask an expert New! Moderator Joined: 02 Jul 2012 Posts: 1223 Location: India Concentration: Strategy GMAT 1: 740 Q49 V42 GPA: 3.8 WE: Engineering (Energy and Utilities) Followers: 124 Kudos [?]: 1483 [1] , given: 116 Re: certain company dismissed employees [#permalink] ### Show Tags 29 Oct 2012, 03:19 1 This post received 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: ScenarioA: 11 workers; 10 receive$1 each while 1 receives $100; 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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Director
Joined: 21 Dec 2009
Posts: 585
Concentration: Entrepreneurship, Finance
Followers: 18

Kudos [?]: 704 [0], given: 20

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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