Question Description
Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer?.

Solutions for Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.

Here you can find the meaning of Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Owing to a global economic slowdown the company Testa Ltd. has decided to review its employee compensation structure in order to cut costs. In the existing structure all 100 employees are paid a Fixed Salary (FS) equal to 10000 and a Variable Salary (VS), where the Variable Salary depends upon the performance of the company and is decided as a percentage of the Fixed Salary.Employee salary = FS + VS The company is thinking of changing it into a variable pay structure where different groups of employees are paid as shown in the table below.Where the Variable Salary depends on the company performance and is calculated as a percentage of Fixed salary.Q. The company is not satisfied with the cost savings from the new compensation structure and decides to retrench 9 employees from employee categories of A and B such that employees retrenched from category A is twice those retrenched from category B. The variable pay for the new compensation is declared to be 10%. What should be the percentage variable pay in the old compensation structure such that there is no difference between the two?a)3.33%b)5%c)6.67%d)None of theseCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CAT tests.