Question: Use the cost avoidance approach to justify a fix that is not supported by the cost justification formulas, using the following information:Lacerations requiring stitches occur
Use the cost avoidance approach to justify a fix that is not supported by the cost justification formulas, using the following information:Lacerations requiring stitches occur approximately 4 times per year. This usually results in the employee being off work for two weeks. The medical bills are $280 for an Urgent Care bill for injuries that occur when the clinic is open. After hours, employees have to be taken to the emergency room and the bill averages $1500. Assume half of incidents will occur after hours.Since the employee, who makes $12 per hour, cannot do his/her normal job duties, a temporary employee has to be hired for approximately 2 weeks at a cate of $10 per hour, 8 hours per day. 5 days per week.When these accidents occur, production is stopped for approximately 30 minutes while the area is being cleaned and returned to working order. The product is produced at a rate of 6 pleces per minute. Each piece of product that is not produced results in a loss of $25.The Supervisors who makes $18.50 per hour takes approximately 2 hours to complete an incident investigation and talk to witnesses.The Safety Professional who makes $20 per hour spends approximately 4 hours following up on the incident investigation and completing the workers compensation paperwork. The insurance carrier charges $1500 administration fee for each worker's compensation case that is openedWhat is the total Indirect cost (add the cost of temporary employees, lost product, supervisor's time, and safety professional's time]for all accidents of this type this year [just enter the numbers no
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