Question

In a small company with 20 employees, 10 employees make $80,000/yr, 6 employees make $ 150,000/yr the 4 highest-paid employees all make $220,000/yr. Calculate the average salary in the company

Answer 1

Answer:

$129 000/yr

Step-by-step explanation:

Weighted average is used to answer this question.

total employees are 20

10 employees make 80 000

total earning for 10 employees = 80 000 * 10 = 800 000 (multiplying)

6 employees make 150 000

total earning for 6 employees= 150 000 * 6 =900 000 (multiplying)

4 employees make 220 000

total earning for 4 employees = 220 000 * 4 = 880 000 (multiplying)

To calculate weighted average all the totals are added and then divide by total number of employees.

weighted average = (800 000 + 900 000 + 880 000)/20

weighted average = 2580000/20

Weighted average = 129 000