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Question
38. A proposed engineering control is expected to cut the accident rate in half for a given process. Cost data for accidents with this process have been estimated by auditors as follows (average cost per accident):DIRECT HIDDEN TOTAL FREQUENCY
COSTS COSTS COSTS PER YEAR
First aid cases none 200 200 6.0
Med. treatment cases 200 900 1100 1.5
Lost time cases 300 2000 2300 0.5
No-injury cases 200 200 400 0.5
Calculate the total annual accident cost reduction benefit expected for this proposed engineering control.
Answer
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