$1\mathrm{.}4$ A company has determined the number of failures of its machine and is evaluating the possibility

of outsourcing preventive maintenance to an outside provider. The company estimated that it loses

an average of RM$2500$ in production time and service expenses for each failure with the current

practice. The current maintenance policy has resulted in the following breakdowns for the last $24$

months as shown in Table $1\mathrm{.}2.$

Table $1\mathrm{.}2$ Breakdown Historical Data

If the company purchases a service contract for preventive maintenance at RM $50,000$ per year, the

contractor will perform the planned maintenance on a monthly basis. However, if any unplanned

breakdown still occurs, the company has to pay additional repair charge RM$500$ for each

breakdown. The company also has to bear lost in production time with estimated cost of RM$1000$

for each failure.