Question
The average salary of 12 employees in a company is
60,000. If the CEO's salary is included, the average salary increases by 5,000. If another employee whose salary is 50,000 leaves the company, what will be the new average salary of the remaining employees including the CEO?Solution
Total salary of the original 12 employees = 12 Ă— 60,000 = 720,000 Let the salary of the CEO be x. New average salary with the CEO included is 65,000: 720,000 + x = 65,000 Ă— 13 720,000 + x = 845,000 x = 125,000 Now, if an employee with a 50,000 salary leaves: New total salary = 845,000 - 50,000 = 795,000 Remaining number of people = 12 (11 employees + CEO). New average salary: = 795,000/12 = 66,250
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