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.