The Quick Wash 24-hour Laundromat has 16 washing machines. A machine breaks down every 20 days...

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Accounting

The Quick Wash 24-hour Laundromat has 16 washing machines. Amachine breaks down every 20 days (exponentially distributed). Therepair service with which the Laundromat contracts takes an averageof 1 day to repair a machine (exponentially distributed). A washingmachine averages $5 per hour in revenue. The Laundromat isconsidering a new repair service that guarantees repairs in 0.50day, but it charges $10 more per hour than the current repairservice. Should the Laundromat switch to the new repair service.please put in excel format.
a) USING CURRENT REPAIR SERVICE
W =
LOST REVENUES = per machine
b)USING NEW REPAIR SERVICE
W =
LOST REVENUES =
SAVING IN REVENUES =
EXTRA COST OF SERVICE =
24x vs. 12(x+10)
x x + 10 24x 12(x+10) difference
10
20
5

Answer & Explanation Solved by verified expert

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Answer Repair service charges per hour by current service was not given in the data So based on current service repair charge the answer for this problem is like this If currently service repair charge 5 both options are same Any one can be chosen If currently service repair charge 524 x 12 x 60 Laundromat should See Answer

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a) USING CURRENT REPAIR SERVICE

	*W =*

	LOST REVENUES =				per machine


b)USING NEW REPAIR SERVICE

	*W =*

	LOST REVENUES =
	SAVING IN REVENUES =
	EXTRA COST OF SERVICE =

		24x vs. 12(x+10)
	x	x + 10	24x	12(x+10)	difference
	10
	20
	5