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The frequency of breakdown of a machine that issues lottery tickets is given in the following table. Repairs cost an average of $240. A service firm is willing to provide preventive maintenance under either of two options: #1 is $500 and covers all necessary repairs, and #2 is $350 and covers any repairs after the first one. Which option would have the lower expected cost: pay for all repairs, service option #1, or service option #2?

\begin{tabular}{|l|r|r|r|r|r|} \hline Number of Breakdowns/Month & 0 & 1 & 2 & 3 & 4 \\ \hline Frequency of Occurrence & .10 & .30 & .30 & .20 & .10 \\ \hline \end{tabular}