Falcon Plastics is a PVC pipe manufacturing firm which produces high quality PVC pipes. Currently they...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Falcon Plastics is a PVC pipe manufacturing firm which produces high quality PVC pipes. Currently they are maintaining the Extruding machines under preventive maintenance, servicing it periodically every 4 weeks. Each of the preventive maintenance service will cost 80 OMR for the company. The machines are critical and are needed to be kept in good condition as each breakdown will cost the company 240 OMR. From the past maintenance records the company has compiled the probability of breakdown of the machine, and the same is given in Table Q3. Table Q3 Weeks of running 1 2 3 4 5 Probability of Breakdown 0.03 0.06 0.14 0.32 0.45 Determine whether it is economical to do preventive maintenance every 4 weeks. If not, suggest a better maintenance policy which is more economical, stating how much the firm would save annually on maintenance costs. Falcon Plastics is a PVC pipe manufacturing firm which produces high quality PVC pipes. Currently they are maintaining the Extruding machines under preventive maintenance, servicing it periodically every 4 weeks. Each of the preventive maintenance service will cost 80 OMR for the company. The machines are critical and are needed to be kept in good condition as each breakdown will cost the company 240 OMR. From the past maintenance records the company has compiled the probability of breakdown of the machine, and the same is given in Table Q3. Table Q3 Weeks of running 1 2 3 4 5 Probability of Breakdown 0.03 0.06 0.14 0.32 0.45 Determine whether it is economical to do preventive maintenance every 4 weeks. If not, suggest a better maintenance policy which is more economical, stating how much the firm would save annually on maintenance costs.
Expert Answer:
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date:
Students also viewed these organizational behavior questions
-
1 2 3 A 5 6 67 7 00 Question 1 You applied for a 28-year HIBOR mortgage loan for buying a property valued at $5,800,000. The interest rate is H + 1.35, capped at P-2.8%, where the current HIBOR is...
-
Develop a linear regression model: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 A Year 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007...
-
A 1 defects size B D E 88888888888888888888888888 2 21 3 24 4 16 5 12 6 15 7 5 8 28 9 20 10 31 11 25 12 20 13 24 14 16 15 19 16 10 17 17 18 13 19 22 20 18 21 39 22 30 23 24 24 16 25 19 26 17 27 15...
-
Using examples outline the main advantages and disadvantages of one of the following models of corporate governance: i) The principal/agent model ii) The stakeholder mode
-
Walmart is one of the leaders in promoting the development and use of radio frequency identification (RFID) and electronic product codes. Explain how Walmart uses RFID in its procurement and...
-
Many lessors require a security deposit in the form of a cash payment or other pledged collateral. Suppose Lambert requires Wildcat to pay a $1.5 million security deposit at the inception of the...
-
A paint company collected data on the lifetime (in years) of its paint in eleven United States cities. The data are in the following table. a. Let y represent paint lifetime, x1 represent January...
-
Twentieth Century Fox (Fox) owned and distributed the successful motion picture The Commitments. The film tells the story of a group of young Irish men and women who form a soul music band. In the...
-
2. Analyze the function f(x)=-(x-1) (x+1) (x+3) to identify its key characteristics then carefully sketch its graph. Produce the leading term and constant term below: a) Degree = c) y intercept = b)...
-
Criterion for Vapor-Free Flow in a Pipeline, to ensure that a pipeline is completely liquid-filled, it is necessary that p > P vap at every point. Apply this criterion to the system in Fig. 7.5-1, by...
-
Consider the group Z Z of order 16 where the operation is component wise addition modulo 4. If G is a union of n subgroups of order 4 then the minimum value of n is 7 4 5 10 6
-
Craigslist, referred to as the world's largest classified advertising, came into the public spotlight after medical school student Philip H. Markoff was charged with the murder of a young woman he...
-
Planned Parenthood is a controversial organization that has an impact on any organization from which it obtains support and also from those organizations that withhold their support. Dayton-Hudson...
-
The New England Compounding Center (NECC) was the epicenter of a nationwide outbreak of meningitis that resulted in 77 deaths. The NECC produced a painkilling steroid for use in back treatments. The...
-
Tom Moore, president of Coca-Cola's Foodservice and Hospitality Division, was looking at sales in the fountain division, a division responsible for one-third of all of Coke's revenues. The fountain...
-
Biofuels were developed as an alternative to the use of oil and the dangers of its carbon footprint. Biofuels are made from corn, and the production of cars that run on biofuels has been mandated in...
-
Whitman Company has just completed its first year of operations. The company's traditional format income statement for the year follows: Whitman Company Income Statement Sales (33,000 units $25 per...
-
A sprinkler head malfunctions at midfield in an NFL football field. The puddle of water forms a circular pattern around the sprinkler head with a radius in yards that grows as a function of time, in...
-
Friendly Bank is in the process of implementing an activity-based costing system. A copy of an interview with the manager of Friendlys credit card department follows:. Question 1: How many employees...
-
Perrex, Inc., has a division in Honduras that makes a powder used to coat wire, and another division in the United States that manufactures wire. The Powder Division incurs manufacturing costs of...
-
Biotechtron, Inc., has two research laboratories in the Midwest, one in Tulsa, Oklahoma, and one in Ames, Iowa. The owner of Biotechtron centralized the legal services function in the Tulsa office,...
-
Jordan Quinn manages the local homeless shelter. He fears that a trusted employee has been stealing from the shelter. This employee receives cash from supporters and also prepares the monthly bank...
-
Refer to question 6. The balance of Allowance for Uncollectible Accounts, after adjustment, will be a. $ 100 $ 100 . b. $ 200 $ 200 . c. $ 300 $ 300 . d. impossible to determine from the information...
-
Refer to questions 6 and 7. Early the following year, Harper wrote off \(\$ 150\) of old receivables as uncollectible. The balance in the Allowance account is now The next four questions use the...
Study smarter with the SolutionInn App