For a mainframe computer, a preventive maintenance inspection and repair cycle costs a total of $2,000 on the average If the computer breaks down, an average cost of $5,000 is incurred The historical breakdown pattern for the computer is the following Months between PM Average number of breakdowns between PM 1 0 2 2 0 6 3 1 8 4 3 6 5 7 0 For the above information, suppose that the average cost of a breakdown is unknown What is the breakdown cost that would have the total cost of the 2 month PM cycle equal to the 3 month PM cycle

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Question: For a mainframe computer, a preventive maintenance inspection and repair cycle costs a total of $2,000 on the average. If the computer breaks down, an

For a mainframe computer, a preventive maintenance inspection and repair cycle costs a total of $2,000 on the average. If the computer breaks down, an average cost of $5,000 is incurred. The historical breakdown pattern for the computer is the following:

Months between PM	Average number of breakdowns between PM
1	0.2
2	0.6
3	1.8
4	3.6
5	7.0

For the above information, suppose that the average cost of a breakdown is unknown. What is the breakdown cost that would have the total cost of the 2-month PM cycle equal to the 3-month PM cycle?

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