Data Analysis & Research Techniques Currently, the organization operates two buildings approximately 3 miles apart with a combined operating cost of $256,100 per year. These operating costs include lease expense, garbage and recycling services, security, janitorial, taxes, power, water and sewer, insurance, gas and printed materials. These costs could be reduced if the company were to consolidate into one facility.Table 1. Cost ComparisonsItemBuilding ABuilding BSubtotal A&BUnified Building CLease$32,000 $12,000 $44,000 $40,000 Garbage$8,000 $5,000 $13,000 $9,000 Security$4,000 $4,000 $8,000 $4,000 Janitorial$6,000 $6,000 $12,000 $8,000 Taxes$8,000 $8,000 $16,000 $8,000 Power$52,000 $41,000 $93,000 $70,000 Water & Sewer$16,000 $12,500 $28,500 $22,000 Insurance$5,000 $5,000 $10,000 $7,000 Gas$13,000 $11,000 $24,000 $23,000 Printed Materials$3,800 $3,800 $7,600 $5,000 Totals147,800108,300$256,100 $196,000 cost per sq. ft (mo)$5.68 $5.55 $5.63 $5.16 Number of Employees8040120117Total Sq. Ft.26,00019,50045,50038,000As shown in Table 1, the total operating cost for the consolidated facility would be $196,000 per year. Each employee requires at least 200 square feet (True Cost), but the need for public spaces such as hallways, kitchen area, restrooms, etc. would be reduced, so SSB can operate with less total square footage than with the two separate buildings.Unifying the facilities could save $60,100 per year in operating costs. Also, the costs of office supplies and printed materials could decrease. The company could also eliminate three positions, which is one of the bigger savings an organization can make (True Cost). Table 1 includes this reduction in force.Consolidation would bring some of the same functions together under one roof, creating some duplicity in duties, and the company could elect to eliminate these three positions: one receptionist, one mailroom clerk and one janitor. The savings to the company would include the wa...
