Question Details

An employer reduces the number of employees in the ratio 8:5 and increases their wages in the ration 7:9. therefore, the overall wages bill is:

Options

A

increased in the ratio 45:56

B

decreased in the ratio 56:45

C

increased in the ratio 13:17

D

decreased in the ratio 72:35

Show Answer

Correct Answer :

Option B

decreased in the ratio 56:45

Solution :

To determine how the overall wage bill changes, we need to compare the initial total wage bill with the new total wage bill by calculating their ratio.

Step 1: Understand the given ratios
Let the initial number of employees be E1 and the new number of employees be E2.
The ratio of the reduction in the number of employees is given as 8:5.
E1E2=85

Let the initial wage per employee be W1 and the new wage per employee be W2.
The ratio of the increase in wages is given as 7:9.
W1W2=79

Step 2: Calculate the ratio of the total wage bill
The total wage bill is calculated by multiplying the number of employees by the wage per employee.

Initial total wage bill (B1) = E1×W1
New total wage bill (B2) = E2×W2

Now, find the ratio of the initial wage bill to the new wage bill:

B1B2=E1×W1E2×W2=E1E2×W1W2

Substitute the given ratio values into the equation:

B1B2=85×79=8×75×9=5645

Step 3: Conclusion
The ratio of the initial wage bill to the new wage bill is 56:45. Since the first value (56) is larger than the second value (45), the overall wage bill has decreased in the ratio 56:45.

Thus, the correct option is decreased in the ratio 56:45.

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