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2. Cost-benefit analysis presents data as a ratio to determine
financial impact on company profitability. The formula is: cost-
benefit ratio = value of projected benefits divided by cost.
We have estimated that a training program on sexual harassment
will cost $14,000 and result in a savings of $70,000 (the cost of the
two settlements we paid last year).
Value of projected benefits = $70,000 Cost = $14,000.00
3. Break-even analysis. This is the point in which revenue (or
savings) from the program equals the cost of the program-the time
the company has "broken even" on the cost of the training.
Formula = Break-even point = cost/savings * time
time is the period of time in which the return is being calculated, if
annually, then 12months.
4. Why is it important for trainers to be able to estimate the ROI,
cost-benefit analysis, and break-even analysis? Give three reasons
why calculating this information will assist the training endeavors.
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HRM 420 Week 4 Individual Assignment Workplace Safety
Ethics Summary
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