New Century Wellness Group Case Analysis

Decent Essays
Cost Analysis
The three options available for New Century Wellness Group is investigated for cost effectiveness as described below and visualized on the following table.
Current System (Manual):
The current system with manual input will incur an expense of $195,000 over the next five years. These costs are due to staff overtime of ($15+$7.50=22.50 hr. x 6 hrs.=$135x52 wks.=) $7,020.00. With the addition of a new hire for the last 26 weeks (six months) of the first year, it will cost $15,600.00. The following years the new hire will cost yearly, $31,200.00. Time spent during the day correcting 3 errors at 20 minutes per error shows a total of 1 hr. per day spent correcting, resulting in $15.00 hr. x 5 days per wk. for 52 weeks a year, totaling
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