Plant XYZ, Inc. - Nowhereville, USA -
1998 Estimated Direct and Indirect Accident Costs
Introduction:
First Four Months FY98:
| 8 lost time cases x $27,000/case |
= $216,000 |
| 16 nonlost time cases x $7,000 |
= $112,000 |
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__________ |
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$328,000 |
| |
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| Estimated direct loses for year: |
$984,000 |
|
Sales needed to pay for loses would range from between $3.9 to $9.8 million based on
a profit margin of 2.5% and the amount of the indirect costs which impact the bottom
line on a dollar for dollar basis.
Interest lost on $ in reserves - $81,000 per year based on 4.5%
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