Question

A company reduces its employees in the ratio 14 : 12 and increases their wages in the ratio 16 : 18. Determine whether the bill of wages increases or not and in what ratio.

• A. Decreases, 28: 27
• B. Increases, 27:28
• C. Decreases, 29: 28
• D. Increases, 28:29
• E. None of these

Answer 1

The correct option is A Decreases, 28: 27

Let initial employees be 14a and final employees be 12a
Similarly initial wage of each employee be 16b and final wage of each employee be 18b
Total initial wage = 14a $\times$ 16b = 224ab, total final wage = 12a $\times$ 18b = 216 ab
So clearly wages decreases and ratio = 224ab : 216ab = 28 : 27