Question

There were 70 employees in the IT start up company. If the number of employees increases by 14, the expense send for Refreshment increases by Rs. 84 per day while the average expenditure per head diminishes by Rs.2. Find the Original expenditure for the Refreshment?
1. Rs. 1360
2. Rs. 1460
3. Rs. 1760
4. Rs. 1860
5. Rs. 1260

Answer 1

Correct Answer - Option 5 : Rs. 1260

Calculation:

Let us Assume Average Expenditure be x initially

∴ the total Expenditure = 70x

When 14 more Employees join the Company, total expenditure = 70x + 84 (Given in the Question)

After this the expenditure decreases by Rs.2 for each employee

⇒ (70x + 84)/(70 + 14) = x - 2

⇒ (70x + 84)/84 = x - 2

⇒ (70x + 84) = 84x - 168

⇒ 14x = 252

⇒ x = 18

∴ the original expenditure for refreshment = 70 × 18

⇒ Rs.1260

∴ the Original expenditure for the Refreshment is Rs. 1260.