Tiger Island Fabricators,which builds offshore oil platforms,has been experiencing problems with its profiling machine,a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe,as shown in the data below.
Each time a machine breaks down,the company loses about $3,000.If the company implements preventive maintenance,it will be able to reduce the number of breakdowns to one per month.Preventive maintenance costs would be $500 a month.Is preventive maintenance a cost-effective option?

Question

Tiger Island Fabricators,which builds offshore oil platforms,has been experiencing problems with its profiling machine,a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe,as shown in the data below.
  Each time a machine breaks down,the company loses about $3,000.If the company implements preventive maintenance,it will be able to reduce the number of breakdowns to one per month.Preventive maintenance costs would be $500 a month.Is preventive maintenance a cost-effective option?

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The Answer of Tiger Island Fabricators,which builds offshore oil platforms,has been experiencing problems with its profiling machine,a computer-driven device that cuts the ends of pipe so that it can be welded to another pipe,as shown in the data below.
  Each time a machine breaks down,the company loses about $3,000.If the company implements preventive maintenance,it will be able to reduce the number of breakdowns to one per month.Preventive maintenance costs would be $500 a month.Is preventive maintenance a cost-effective option?

Tiger Island Fabricators,which Builds Offshore Oil Platforms,has Been Experiencing Problems