CAT 2008 — DILR Question 10
Answer the following question based on the information given below.
There are 100 employees in an organization across five departments. The following table gives the departement-wise distribution of average age, average basic pay and allowances. The gross pay of an employee is the sum of his/her basic pay and allowances.
There are limited numbers of employees considered for transfer/promotion across departments. Whenever a person is transferred/promoted from a department of lower average age to a department of higher average age, he/she will get an additional allowance of 10% of basic pay over and above his/her current allowance. There will not be any change in pay structure if a person is transferred/promoted from a department with higher average age to a department with lower average age.
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If two employees (each with a basic pay of Rs. 6000) are transferred from Maintenance department to HR department and one person (with a basic pay of Rs. 8000) was transferred from Marketing department to HR department, what will be the percentage change in average basic pay of HR department?
Answer & solution
- A
10.5%
12.5%
- C
15%
- D
30%
- E
40%
Note that in this question, the percentage change in basic pay is asked. According to the common data, only the allowances (and hence the gross pay) is affected when a person is transferred. The basic pay of a person remains unaltered.
∴ The average basic pay after the transfers have taken place
∴ The percentage change in the average basic pay of the HR department
× 100 = 12.5%
Hence, option (b).