The pie-charts below give the percentage distribution of employees in different Departments in XYZ Company Ltd. during the years 2005 and 2006. A - Administration; B - Operations; C - Sales & Marketing; D - Finance & Accounts; E - Corporate HQ.
2005 (total employees 18,000): A 22%, B 23%, C 18%, D 29%, E 8%.
2006 (total employees 20,000): A 24%, B 26%, C 20%, D 20%, E 10%.
If the average monthly salary of employees in Administration was Rs 12,000 in 2005, what was the approximate total salary expense of Administration in 2005?
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First convert Administration's 22% share of the 2005 workforce into an actual employee count, then multiply that count by the Rs 12,000 monthly salary to get the total monthly wage bill.
Step 1: Understanding the Concept: Instead of finding the full headcount first, we can work out the monthly wage bill contributed by each 1% of the 2005 workforce, and then scale that up to 22%. Step 2: Key Formula or Approach: 1% of the 2005 workforce corresponds to $\frac{18000}{100} = 180$ employees, and their combined monthly salary at Rs 12,000 each is a fixed "per percentage point" amount that can simply be multiplied by 22. Step 3: Detailed Explanation. Employees per 1% $= 180$. Monthly salary cost per 1% $= 180 \times 12{,}000 = 21{,}60{,}000$ rupees, that is Rs 21.6 lakh for every percentage point of the workforce. Administration is 22% of the company, so its monthly salary cost $= 22 \times 21.6 \text{ lakh} = 475.2 \text{ lakh}$. Step 4: Final Answer: Rs 475.2 lakh is the same as Rs 4.752 crore, which rounds to about Rs 4.7 crore, matching the direct calculation. \[\boxed{\text{Rs. 4.7 crores}}\]
