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:
Correct Answer :
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 and the new number of employees be .
The ratio of the reduction in the number of employees is given as 8:5.
Let the initial wage per employee be and the new wage per employee be .
The ratio of the increase in wages is given as 7:9.
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 () =
New total wage bill () =
Now, find the ratio of the initial wage bill to the new wage bill:
Substitute the given ratio values into the equation:
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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