s recently cited as being out of compliance by an OSHA inspector. Auditors have estimated cost data for accidents with this process as follows (average cost per accident):
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?
