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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 3-48Â Â Cost Separation
About 8 years ago, Kicker faced the problem of rapidly increasing costs associated with work- place accidents. The costs included the following:
Â
|
State unemployment insurance premiums |
$100,000 |
|
Average cost per injury |
$Â Â Â 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 systematic monitoring of adher- ence to the program by directors and supervisors. A year later, the indicators were as follows:
Â
|
State unemployment insurance premiums |
$50,000 |
|
Average cost per injury |
$Â Â Â Â Â Â 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.      CONCEPTUAL CONNECTION Discuss the safety-related costs listed. Are they variable or fixed with respect to speakers sold? With respect to other independent variables (describe)?
2.      CONCEPTUAL CONNECTION Did the safety program pay for itself? Discuss your reasoning.
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