Question

The Honda company reduces the number of its worker in the ratio 7 : 4 and increases their wages in the ratio 3 : 5 then find the ratio of the company's expenditure on total wages previously and now.
1. 21 : 20 
2. 20 : 21
3. 4 : 5 
4. 5 : 4
5. None of these 

Answer 1

Correct Answer - Option 1 : 21 : 20 

Given 

Ratio of number of worker reduces = 7 : 4 

Formula Used 

Total Wages = number of worker × wages per person 

Calculation 

Total wages before reduction of workers = 7x × 3y = 21xy 

Total wages after reduction of workers = 4x × 5x = 20 xy 

Ratio of wages (previous : now) = 21xy : 20xy = 21 : 20 

∴ The required answer is 21 : 20