Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with a cost/benefit analysis for financial justifications. Preventative maintenance should be done every six months to keep maintain the equipment for extended

I need help with a cost/benefit analysis for financial justifications.

Preventative maintenance should be done every six months to keep maintain the equipment for extended use. There will be one service engineer that will perform the preventative maintenance that will cost the company approximately $500 an hour. It will take approximately seven hours to perform the maintenance. This will be an operational cost of $7,000 for preventative maintenance. The company will have a total of $15,000 per year so that it can have extra expenses for unexpected maintenance. If the maintenance becomes more than that each year, the company will decide to invest more than what was expected for the upcoming years. The cost for inventory will be $20,000. This will cover parts that need to be stored, parts that need to be ordered, and preventative maintenance parts.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring The Hospitality Industry

Authors: John R Walker

2nd Edition

013243766X, 9780132437660

More Books

Students also viewed these General Management questions

Question

Answered: 1 week ago

Answered: 1 week ago

Question

6. How can a message directly influence the interpreter?

Answered: 1 week ago