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 company experiences an average of 1.67 breakdowns per week (total breakdowns/number of weeks = 50/30). This results in a weekly cost of $5,000 (1.67 breakdowns per week * $3,000 cost per breakdown).
With preventive maintenance, the company would only experience one breakdown per week, resulting in a weekly cost of $4,000 ($1,000 cost of maintenance + $3,000 cost of one breakdown). Therefore, the weekly total maintenance cost of the program would be $4,000.

DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other