(Answered) : Question 5 20 Marks Mayflower Manufacturing Company Produces Product Number Machines Machi Q31608197

QUESTION 5 [20 Marks] The Mayflower Manufacturing Companyproduces a product on a number of machines. When a machine breaksdown, it must be repaired; and it takes either one, two or threedays for the repair to be completed. Every time a machine breaksdown, the cost to the company is an estimated R2 000 per day inlost production until the machine is repaired. The company wouldlike to know if it should implement a machine maintenance programat a cost of R20 000 per year that would reduce the frequency ofbreakdowns and thus the time for repair. The maintenance programwould result in the following