📊 GMAT Exam Prep

A company has three departments with the following employee counts and average annual salaries: Department X: 40 employees, average salary $70,000. Department Y: 60 employees, average salary $55,000. Department Z: 20 employees, average salary $80,000. What is the approximate overall average salary for employees in Departments X and Z combined?

A $71,667
B $73,333
C $75,000
D $76,250

✓ Correct Answer: Option B

To calculate the weighted average: (40 employees * $70,000) + (20 employees * $80,000) / (40 + 20 employees) = ($2,800,000 + $1,600,000) / 60 = $4,400,000 / 60 = $73,333.33.

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