Q. Three independent strategies A, B and C have been initiated for cost cutting in a company producing respectively 30%, 40% and 10% savings. Assuming that they operate independently, what is the net saving achieved?


Option
a) 56%
b) 64%
c) 62.2%
d) 68%
e) 61%

• 62.2%
  If initial cost is Rs 100, then
  Final cost will be 100*0.7*0.6*0.9 = Rs. 37.8
  
  savings = 100-37.8=62.2
  
  so 62.2% .. option c
• 12 years agoHelpfull: Yes(6) No(1)
• Ans. Option (c) 62.2%
  
  Explanation:
  As these three strategies A, B and C are independent so these will cut cost one after the other.
  If initial cost is Rs 100, then
  30% cost is cut after initializing strategy A, then cost will remain 70% = 70
  further 40% cost is cut after strategy B, then cost will remain 60% of 70 = 42
  further 10% cost is cut after strategy C, then cost will remain 90% of 42 = 37.8
  
  Thus final cost remains 37.8 % of the original cost. Hence net saving is 62.2%
• 12 years agoHelpfull: Yes(2) No(0)