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Wharton Manufacturing Company operates its 23 large and expensive prinding and lathe machines from 7 a m. to 11pm,7 dry a week. For the past

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Wharton Manufacturing Company operates its 23 large and expensive prinding and lathe machines from 7 a m. to 11pm,7 dry a week. For the past year, the fim has been under contract with crew. Simkin charges $655 per week for this service. Since signing the maintenance contract, Wherton Manufacturing has noted an average of only four breakdowns per week. When a grinding or lathe machine does break down during a working shift, it costs Wharton about $245 in lost production and repair costi. After reviewing past breakdown records (for the period before signing a prevertive maintenance contract with Simkin and Sons), Whartor's production manager was abile so summarite the following pasterns: The production manager is not certain that the contract for prevertive maintenance with Simkin is in Wharton's best financial interest. He recognites that much of tis breakdown data are old but is farly certain that they are representative of the present picture. i) The cost of the breakdownt without the mantenance contract is s per week (enter your respanse rounded to ine nearest whole number) b) The cost of the broakdowns with the maintenance contract is $ per week (enter your response rounded to the neavest whote number) is the contract for preventive maintenance with Simkin is in Whartor's best financial interest? No, because the coet of the breakdowns wenout the maintenance coefract is less than me cost of the breakdiwss wath the maintenance contract. No, because the cost of the breakdowne with the maintenance contract is iess than the cost of the breakdowns without the maintenance contract. Yes, because the cost of the breakdowns with the maintenance contract is less than the cost of the breakdosna without the manienance contract. Yes, because the cost of the breakdowns without the maintenance contract is loss than the cost of the breakdowns with the muintunance contract

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