A manager is comparing the total maintenance (preventive plus breakdown)cost curves for two scenarios.The graphs have maintenance commitment on the x-axis and costs on the y-axis.Scenario A includes the direct breakdown maintenance costs,while Scenario B includes the "full" (direct and indirect)breakdown maintenance costs.Which of the following should the manager notice when going from Scenario A to Scenario B?

Question

Quizplus · Accepted Answer

When going from Scenario A to Scenario B, the total cost curve will shift upwards as it now includes both direct and indirect breakdown maintenance costs. This will result in the optimal point moving to the right, as the cost of breakdown maintenance will increase. The slope of the preventive maintenance cost curve is not affected by the inclusion of indirect breakdown maintenance costs, so option D is not correct. Option A is incorrect as the total cost curve increases, and Option E is incorrect as the total cost curve shifts upwards. Therefore, the best choice is C.

A Manager Is Comparing the Total Maintenance (Preventive Plus Breakdown)cost