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Harry Ltd. needs to hire an annual external maintenance service for the Finishing department machines. The maintenance company offers two maintenance contract options: Option 1:
Harry Ltd. needs to hire an annual external maintenance service for the Finishing department machines. The maintenance company offers two maintenance contract options: Option 1: monthly payment of 2,500. Option 2: monthly payment of 200 and another unique payment of 35 per machine. Managers of Harry Ltd. need to decide which is the best option considering the existence of 240 machines in the Finishing department. The annual budget that Harry Ltd. has for the maintenance program is 28,000. Considering this information, which of the following statements is true? Select one: a. Harry Ltd. should accept Option 1. b. Harry Ltd. should accept Option 2. C. Harry Ltd. should not accept any of the two options. d. None of the answers is true
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