DuLarge Marine Manufactures Diesel Engines for Shrimp Trawlers and Other

question 112

Multiple Choice

DuLarge Marine manufactures diesel engines for shrimp trawlers and other small commercial boats. One of their CNC machines 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. $$\begin{array} { | l | c | c | c | c | c | } \hline\text { Number of breakdowns per week }&0&1&2&3&4 \\\hline \begin{array} { l } \text { Frequency (Number of weeks that } \\\text { breakdowns occurred) }\end{array} & 8 & 3 & 5 & 9 & 5\\\hline\end{array}$$ What is the weekly total maintenance cost of this program?

• A) $1,000
• B) $3,000
• C) $4,000
• D) $6,000
• E) $8,000

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Definitions:

Offer

A proposal by one party to another to enter into a legally binding contract with specific terms.

Offeree

The party to whom the offer is made.

Rejected

Refers to being dismissed or turned down, typically in response to a proposal, offer, or application.

Minor

An individual under the legal age of adulthood, whose rights and responsibilities are restricted and partially under the guardianship of parents.