GMAT Practice Question Set #17 (Question 49-51)

Problem Solving Question #49: Headcount Reduction  
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This year, MBB Consulting fired 5% of its employees and left remaining employee salaries
unchanged. Sally, a first-year post-MBA consultant, noticed that that the average (arithmetic
mean) of employee salaries at MBB was 10% more after the employee headcount reduction
than before. The total salary pool allocated to employees after headcount reduction is what
percent of that before the headcount reduction?

(A)

98.5%

(B)

100.0%

(C)

102.8%

(D)

104.5%

(E)

105.0%

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