Join ExamsbookAnswer : 1. "49.6%"
Three strategies P, Q and R have been initiated for cost cutting in a company producing respectively 20%, 30% and 10% savings. Assuming that they operate independently, what is the net saving achieved ?5
Q: Three strategies P, Q and R have been initiated for cost cutting in a company producing respectively 20%, 30% and 10% savings. Assuming that they operate independently, what is the net saving achieved ?
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Answer : 1. "49.6%"
Explanation :
Answer: A) 49.6% Explanation: As these three strategies P, Q and R are independent so these will cut cost one after the other.If initial cost is Rs 100, then20% cost is cut after initializing strategy P, then cost will remain 80% = 80further 30% cost is cut after strategy Q, then cost will remain 70% of 80 = 56further 10% cost is cut after strategy R, then cost will remain 90% of 56 = 50.4 Thus final cost remains 50.4 % of the original cost. Hence net saving is 100 - 50.4 = 49.6 %.