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

For a mainframe computer, a preventive maintenance (PM) 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

Recommend how often preventive maintenance should be performed based on the total annual cost considering the breakdown cost and the PM cost.

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