A company, at the time of inflation reduced the staff in the ratio 5 : 3 and average salary per employee is increased in the ratio 7 : 8. By doing so, the company saved Rs 55000. What was the initial expenditure (in Rs) of company?

Let original number of employees = $$5x$$

=> Number of employees after inflation = $$3x$$

Let initial average salary = $$7y$$ and after inflation = $$8y$$

=> Original cost = $$(5x)\times(7y)=35xy$$

Similarly, new cost = $$(3x)\times(8y)=24xy$$

According to ques, money saved = $$35xy-24xy=55000$$

=> $$xy=\frac{55000}{11}=5000$$

$$\therefore$$ Initial expenditure (in Rs) of company = $$35\times5000=175000$$

=> Ans - (C)