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 cost of breakdowns is 30 x $3,000 = $90,000 over the 30 week period.
If preventive maintenance were implemented, the cost would be 30 x $1,000 = $30,000 over the same 30 week period.
Therefore, the total maintenance cost of the program would be $30,000 + $1,000 = $31,000 per week.
Therefore, the answer is C, $4,000.

DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other