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By what percentage will the bonus amounts increase for remaining employees if an office lost 10% of its employees?

5%

10%

11%

When an office loses 10% of its employees, the remaining employees are effectively taking on a greater share of the bonus pool because there are fewer people to distribute that pool among.

To understand why the 11% increase is the correct answer, consider this: originally, if there were 100 employees, losing 10 employees (10% of 100) leaves 90 employees. The total bonus amount, for the sake of example, can be considered as a fixed amount, say $1000.

Before the reduction, this amount would be divided equally among the 100 employees, meaning each employee would receive $10. However, after the loss of 10 employees, that same $1000 bonus pool is now shared among only 90 employees.

When you divide $1000 by 90, each remaining employee would then receive approximately $11.11 instead of $10. The increase in the bonus per employee can be calculated as follows:

1. The new bonus amount per employee ($11.11) minus the old bonus amount ($10) equals $1.11.

2. To find the percentage increase, you calculate ($1.11 / $10) x 100%, which equals approximately 11.1

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