Question

Haul’m-in 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?

Number of breakdowns per week

0

1

2

3

4

Frequency (Number of weeks that breakdowns occurred)

8

3

5

9

5

A. $1,000
B. $3,000
C. $4,000
D. $6,000
E. $8,000

Answer 1

The right solution is Option C "$4,000".

Step-by-step explanation:

The given values are:

Breakdown cost,

= $3,000

Per week cost of preventive maintenance,

= $1,000

Breakdown per week,

= 1

Now,

The cost per week will be:

=
`Breakdown \ cost+Cost \ of \ preventive \ maintenance`

On substituting the values, we get

=
`3000+1000`

=
`4,000` ($)