With 100 employees on staff, your company's insurance company recommended an online two-hour seminar each employee should watch and complete regarding new safety practices. By completing the seminar, accidents costing the company $88,000 per year will be reduced by 25%. The seminar will cost $15,000 once all employees complete it. How much money will the company save

$7,000

Explanation:

The insurance company will actually save some money, but I doubt that your company does. We can assume that the seminar will be paid by the insurance company and it costs $15,000. After watching that seminar, accidents should decrease by 25% of an equivalent to = $88,000 x 25% = $22,000

Since the insurance company will save $22,000 with the seminar and the cost of the seminar is $15,000, its net gain = $22,000 - $15,000 = $7,000

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