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Two departments, one average

A company has 40 employees in sales averaging ₹30,000 a month and 60 in engineering averaging ₹50,000.

What is the average salary across the whole company?

Show the answer and the worked solution

Correct answer: C.

₹42,000

Worked solution

  1. Sales total = ₹12,00,000; engineering total = ₹30,00,000.
  2. Combined = ₹42,00,000 across 100 employees.
  3. Average = ₹42,000.

Answer: ₹42,000.

The idea

The weighted average leans towards the larger department, so it sits above the midpoint of ₹40,000. That is a quick sanity check.

Shortcut. Weights 40 : 60 put the average 60% of the way from ₹30,000 to ₹50,000: 30,000 + 12,000 = ₹42,000.

Common trap. ₹40,000 — the plain midpoint of the two averages, which ignores that engineering has more people.

Two departments, one average — Caselets Aptitude Question

Two departments, one average: A company has 40 employees in sales averaging ₹30,000 a month and 60 in engineering… Answer and worked solution on CodeKairo.

Question

A company has 40 employees in sales averaging ₹30,000 a month and 60 in engineering averaging ₹50,000.

What is the average salary across the whole company?

Options

  1. ₹38,000
  2. ₹40,000
  3. ₹42,000
  4. ₹44,000
Show the answer and the worked solution

Correct answer: C. ₹42,000

Worked solution

  1. Sales total = ₹12,00,000; engineering total = ₹30,00,000.
  2. Combined = ₹42,00,000 across 100 employees.
  3. Average = ₹42,000.

Answer: ₹42,000.

The idea

The weighted average leans towards the larger department, so it sits above the midpoint of ₹40,000. That is a quick sanity check.

Shortcut. Weights 40 : 60 put the average 60% of the way from ₹30,000 to ₹50,000: 30,000 + 12,000 = ₹42,000.

Common trap. ₹40,000 — the plain midpoint of the two averages, which ignores that engineering has more people.

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