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

Currently, the company is experiencing an average of 1.5 breakdowns per week (45 breakdowns over 30 weeks). At $3,000 per breakdown, this is costing the company $4,500 per week in time and repair expenses alone. If they implement preventive maintenance at a cost of $1,000 per week, they can reduce the breakdowns to an average of 1 per week. This means they would only be losing $4,000 per week ($3,000 in repair expenses plus $1,000 in preventive maintenance costs) instead of $4,500 per week. Therefore, the total maintenance cost of this program would be $4,000 per week (option C).

DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other