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  • Question
  • 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 ?


  • Options
  • A. 49.6%
  • B. 50.4%
  • C. 33.67%
  • D. 66.66%

  • Correct Answer
  • 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, then
    20% cost is cut after initializing strategy P, then cost will remain 80% = 80
    further 30% cost is cut after strategy Q, then cost will remain 70% of 80 = 56
    further 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 %.

  • Tags: AIEEE, Bank Exams, CAT, GATE, GRE, Bank Clerk, Bank PO

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