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The average salary of a company increases by 1000 when the salary of the manager, which is Rs. 95000, is included. If the number of employees excluding the manager is 64, what is the final average salary of the company including the manager?
1. Rs.30,000
2. Rs.31,000
3. Rs.35,000
4. Rs.32,000

1 Answer

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Best answer
Correct Answer - Option 2 : Rs.31,000

Given:

When manager is included,

Average increase in salary = Rs. 1000

Salary of manager = Rs. 95,000

Total employees excluding manager = 64

Formula Used:

Average = (Sum of salaries) / Number of people

Calculation:

Let the average salary of the company excluding the manger be x.

After addition of Manager's salary, the average increases by 1000

⇒ 64x + 95000 = 65 × (x + 1000)

⇒ 64x + 95000 = 65x + 65000

⇒ x = 30,000

The final average salary = 30,000 + 1000 = Rs. 31000

∴ The final average salary of the company is Rs.31,000.

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