The number of employees is reduced in the ratio 3: 2 and the salary of each employee are increased in the ratio 4: 5. By doing so, the company saves Rs. 12000. What was the initial expenditure on the salary?
Answer & explanation
Correct answer: option 4
Initial Final
Number of employee 3 : 2
Salary of each employee 4 : 5
---------------------------------------------------------------
Company expenditure 3×4 : 2×5
12 : 10
ATQ,
( 12 - 10 )R = 12000
2R = 12000
1R = 6000
Initial expenditure = 12 R = 12 × 6000 = 72000