The number of employees in a company is reduced in the ratio 3 : 2 and the salary of each employee is increased in the ratio 4 : 5. By doing so, company saves Rs. 12,000. So, find the initial expenditure of the company on salary.

The initial expenditure of the company on salary is Rs. 72.000

Explanation:

First we need to express the employees ratio in letter

3A=B

2C=D

A and C being the amount of employees

B the salary before, D the salary after

They say the salary after is the slary before minus Rs. 12.000

we can express this as D=B-12.000

We know to that the salary of each employee increased 4 to 5

Then C = (5/4) A or A = (4/5) C

We can have the following equation

2 ((5/4) A) = B-12.000

A = (2/5) (B-12.000)

we use this in the first expression

3 (2/5) (B-12.000) = B

1,2B-14400=B

0,2B=14400

B=72.000