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DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines, which is used 5 0 weeks in

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines, which is used 50 weeks in a year, 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. (Hint: compute Total first).
Number of breakdowns per week
0
1
2
3
4
Total
Frequency
8
3
5
9
5
x
What is the expected yearly total maintenance cost of this preventive program?
A.
$80,000
B.
$15,000
C.
$20,000
D.
$6,600
E.
$4,000

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