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Hondah involves in car manufacturing business. The market value of its assets is worth

RM90 million and it has a total of 10,000 workers working in its plant.

As a risk management consultant, you are required by Hondah to recommend the amount to be spent for safety measures in order to reduce worker injuries at an acceptable level.

The table below shows the records of worker injuries and the costs incurred in the past five years at Hondah:

Year	Number of Injured Workers	Cost of Injury RM
2015	140	40,000
2016	90	25,000
2017	175	60,000
2018	110	30,000
2019	200	100,000

The sharp increase in the cost of worker injury in 2019 has forced Hondah to spend RM5,000 on loss control measures in 2020 and the number of injured workers in that year was recorded to be 190.

In your analysis, you have estimated that if there were no loss control measures, the number of injured workers would have increased to 220. Further additional spending on loss control will result in a lower number of injured workers as indicated in the table below:

Loss Control Expenditure RM	Number of Injured Workers
10,000	168
15,000	150
20,000	142

Answer the following questions based on the information given above. Provide detailed workings to show how answers are obtained.

A. Calculate average severity of worker injury. (Round answer to the nearest RM)

B. How much is the optimal amount Hondah should spend on safety measures?

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