Discuss the safety-related costs listed

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Reference no: EM13940585

COST SEPARATION

About eight years ago, Kicker faced the problem of rapidly increasing costs associated with workplace accidents. The costs included the following:

State unemployment insurance premiums	$100,000
Average cost per injury	$1,500
Number of injuries per year	15
Number of serious injuries	4
Number of workdays lost	30

A safety program was implemented with the following features: hiring a safety director, new employee orientation, stretching required four times a day, and system- atic monitoring of adherence to the program by directors and supervisors. A year later, the indicators were as follows:

State unemployment insurance premiums	$50,000
Average cost per injury	$50
Number of injuries per year	10
Number of serious injuries	0
Number of workdays lost	0
Safety director's starting salary	$60,000

Required:

1. Discuss the safety-related costs listed. Are they variable or fixed with respect to speak- ers sold? With respect to other independent variables (describe)?

2. Did the safety program pay for itself? Discuss your reasoning.

Reference no: EM13940585

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