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 machine broke down 30 times in 30 weeks, on average once per week.
- Each breakdown costs $3,000 in time and repair expenses.
- Therefore, the total cost of breakdowns in 30 weeks is 30 x $3,000 = $90,000.

With preventive maintenance:
- The cost of preventive maintenance is $1,000 per week.
- The estimated number of breakdowns per week with preventive maintenance is one.
- Therefore, the total cost of maintenance in 30 weeks is 30 x $1,000 = $30,000.

Adding the two costs together, the weekly total maintenance cost with preventive maintenance is ($90,000 + $30,000) / 30 = $4,000. Therefore, the best choice is C.

DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other