The formula to calculate the Cost Decrease (CD) is:
\[ CD = IC - IC \times \frac{C}{100} \]
Where:
Cost Decrease (CD) is the reduction in cost from an initial value. It is calculated by multiplying the percent decrease by the initial cost, then subtracting the result from the initial cost. This metric is useful for understanding the savings achieved through cost reductions.
Let's assume the following values:
Step 1: Calculate the decrease amount:
\[ 1000 \times \frac{20}{100} = 200 \]
Step 2: Subtract the decrease amount from the initial cost:
\[ 1000 - 200 = 800 \]
The Cost Decrease (CD) is $800.
