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2.Three independent strategies A,B,C have been initiated for cost cutting in a company producing respectively 30%,20%,and 40% savings.Assuming that they operate independently,what is the net saving achieved.

2007-02-16 21:03:29 · 4 answers · asked by Anonymous in Science & Mathematics Mathematics

4 answers

Let, the total cost of the company be 100.
For Strategy A ,when operating alone, the saving @20% is 20
For Strategy B, when operating alone, the saving @30% is 30
For Strategy C, when operating alone, the saving @40% is 40
When all 3 are operating,
the saving due to A includes the contributary savings of B & C.
So out of 20, the savings for A alone is 20 - (30% of 20 + 40% of 20) = 20 - (6+8) = 6
Similarly the savings due to B alone is 30 - (20% of 30 + 40% of 30) = 30 - (6+12) = 12
And the savings due to C alone is 40 - (20% of 40 + 30% of 40) = 40 - (8+12) = 20.
So total savings 6+12+20 = 38.
Hence the total % saving is 38%.

2007-02-16 21:30:49 · answer #1 · answered by saudipta c 5 · 0 0

It kind of depends what you mean by independent.

If you mean that the savings occur in completely separate areas then the net saving is just the sum of the savings, 90%.

But if you mean independent in the sense that there is no correlation between the savings then the total saving will be 100%-70%*80%*60%=66.4%

2007-02-24 02:57:34 · answer #2 · answered by pseudospin 2 · 0 0

50%

2007-02-24 17:26:00 · answer #3 · answered by kapmakunat 2 · 0 0

90%
add em'

2007-02-24 20:28:15 · answer #4 · answered by Keith M 2 · 0 0

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