Let the number of employees in the starting =x The average salary in the starting=y Initial expenditure =xy The employees were reduced in the ratio 5: 3 , then the number of employees =
3x
5
The average salary was increased in the ratio 7: 8 , then average salary =
8
7
y According to the question, xy−
3x
5
×
8y
7
=55000 ⇒
35xy−24xy
35
=55000 ⇒ 11xy=35×55000 ∴ xy=175000 So, the initial expenditure of company =₹175000