Averages , Ratio and Proportion Question 2 - CAT 2025

Question

The average salary of 5 managers and 25 engineers in a company is 60,000 rupees. If each of the managers received a 20% salary increase while the salary of the engineers remained unchanged, the average salary of all 30 employees would have increased by 5%. The average salary, in rupees, of the engineers is:

  • A. 45000
  • B. 50000
  • C. 54000
  • D. 40000

Step-by-Step Explanation

  • Analyze the Total Value Shifts:

Let the average salary of the managers be M and that of the engineers be E.

Total original salary pool = 30 employees × 60,000 = 1,800,000 rupees

The problem states that a 20% increase in each manager's salary raises the company's overall average salary by 5%.

Net increase in salary pool = 5% of 1,800,000 = 90,000 rupees

  • Isolate Manager and Engineer Components:

This 90,000 rupee increase is generated entirely by the 20% salary hike distributed across the 5 managers:

5 × (0.20M) = 90,000 ⟹ M = 90,000 rupees

The average manager baseline salary is 90,000 rupees.

Now, substitute M = 90,000 back into the original aggregate formula to solve for E:

5(90,000) + 25E = 1,800,000

450,000 + 25E = 1,800,000

25E = 1,350,000 ⟹ E = 1,350,000/25 = 54,000 rupees

Correct Option: C

💡 FundaMakers Tip:

Use the Incremental Deviation Method. Do not write separate, long simultaneous equations for the before and after states. Isolate the net change (5% of total = 90,000) and map it directly to the component that caused it (20% of 5 managers). This isolates M instantly and simplifies the remaining steps.

Share on XShare on WhatsApp
error: Content is protected !!

ENQUIRE NOW

Fill In The Form To Get A Quick Call From Our Team.

Stay Connected On

BOOK YOUR DEMO NOW!

BOOK YOUR DEMO NOW!