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Calculate the total cost of maintenance

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Reference no: EM132899063

Based on this information i am supposed to calculate the total cost of maintenance (TCM).

-Repair Time on average runs 8 hours per repair.

-Estimated Time Between Repairs is 180 days, but can range between 120 and 180 days.

-Estimated Cost of Labor is $75 per hour, but can range between $70 and $90 per hour depending on personnel required to make the repair.

-Estimated Cost of Parts is $1,200, but based on prior vendor invoices, can run anywhere from $1,120 to $1,350.

-Expected Life of the Asset is 10 years, but could possibly range from 8 years to 11 years depending on wear and tear.

Assume that all values within the estimated range of values for non-discrete (estimated) variables are equally likely to occur unless otherwise stated.

The TCM should be $36,500 but i don't know how to get to that number.

Reference no: EM132899063

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