New Century Wellness Group Case Analysis

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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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