DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats.One of their CNC machines has caused several problems.Over the past 30 weeks,the machine has broken down as indicated below.Each time the machine breaks down,the firm loses an average of $3,000 in time and repair expenses.If preventive maintenance were implemented,it is estimated that an average of only one breakdown per week would occur.The cost of preventive maintenance is $1,000 per week. What is the weekly total maintenance cost of this program?

Question

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats.One of their CNC machines has caused several problems.Over the past 30 weeks,the machine has broken down as indicated below.Each time the machine breaks down,the firm loses an average of $3,000 in time and repair expenses.If preventive maintenance were implemented,it is estimated that an average of only one breakdown per week would occur.The cost of preventive maintenance is $1,000 per week.  What is the weekly total maintenance cost of this program?

Quizplus · Accepted Answer

Without preventive maintenance, the weekly cost of breakdowns is $3,000 x 4 breakdowns = $12,000. With preventive maintenance, the weekly cost would be $1,000 for the maintenance plus $3,000 for one potential breakdown = $4,000. Therefore, implementing preventive maintenance would reduce the weekly maintenance cost by $8,000, making option C the best choice.

DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other