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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.
Some employees were removed from Division A while some new employees were added to division B and C. There was no salary increase last year of employees. But the overall cost of the salary to the company has increased.
Pre-thinking:--This means , the new people brought in were given higher pay checks than the people who were dropped.
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The information above, if accurate, most strongly supports which of the following?
This is an inference question.Quote:
A. Many of the people who lost their jobs in the company’s marketing division were rehired by one of the other two divisions.
We cannot say that this happened. Also we want to infer something related to cost. Incorrect.Quote:
B. At least one of the two divisions that added employees last year employs more people than the marketing division does.
More people will not let us reach to the conclusion as to why overall cost increased. Incorrect.Quote:
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.
Let us assume that all 3 divisions were paid 100 initially.
Now after reduction in no of employees in division A and increase in B and C, the new total salary paid can be :
1. A-90,B-90,C-120. --In this case A<C but A=B. So we cannot conclusively say.Quote:
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.
Ok. The overall average must have increased definitely . This is correct.Quote:
E. The company’s profits this year are slightly higher than they were last year.
We are not concerned about profits of a company. IncorrectIMO D.