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 | | | | |
