A proposed engineering control is expected to cut the

Assignment Help Finance Basics

Reference no: EM13394135

A proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently cited as being out of compliance by an OSHA inspector. Auditors have estimated cost data for accidents with this process as follows.

Direct Cost Hidden Cost Freq/Yr
First aid cases 1000 4000 6
Med. treatment cases 6000 9000 1.5
Lost time cases 3000 50000 0.5
No-injury cases none 2000 5.0

a. Calculate the total benefit expected for this proposed engineering control. Show your calculations.
b. If the proposed engineering control will cost $40,000, does the cost-benefit analysis support funding it? Why or why not?
c. What other reasons might support funding the project?

Reference no: EM13394135

Questions Cloud

Wabash bank would like to understand if there is a : 1. costco is able to keep its inventory expenditure relatively low through its management technology and cutting-edge

What can we conclude about existence of economies or : a study of 86 savings and loan associations in six northwestern states yielded thefollowing cost function c 2. 38 2.84

Tinbergen cans expects sales next year to be 50000000 : tinbergen cans expects sales next year to be 50000000. inventory and accounts receivable combined will increase 8000000

Ix is a specialized packaging company that packages other : ipx is a specialized packaging company that packages other manufacturers products. other manufacturers ship their

A proposed engineering control is expected to cut the : a proposed engineering control is expected to cut the accident rate by 40 percent for a given process that was recently

Find the difference in welfare between free trade and : your last assignment brings you to work with the government of sweden on textile markets. sweden is fully integrated

When searching for a supplier which of the following : 1.which group is experiencing the fastest population growth today?2.what is the second stage of the consumer buying

You have a product in which inventory is taken frequently : 1 in cases where demand is difficult to predict which probability models would you use so that the risk associated with

Haywood company sells a single product with a contribution : haywood company sells a single product with a contribution margin of 5 per unit fixed costs of 74400 and sales for the

User Account

All Pages