Naseej company owns a number of sewing machines and each machine needs maintenance every 6 months at a cost of 9 riyals, and during this period 7 major faults occur that are repaired at a cost of 120 riyals per break

Accounting Jan 21, 2021

Naseej company owns a number of sewing machines and each machine needs maintenance every 6 months at a cost of 9 riyals, and during this period 7 major faults occur that are repaired at a cost of 120 riyals per break. If you know that the maintenance and repair costs in this company within one year are 5280 riyals, calculate the number of machines Owned by the company.

Expert Solution

1.Computation of the total cost for general repairs per year

Particulars	Amount (Riyal)
Total Cost Riyals	5,280
Less: Cost for Major faults(120 Riyal * 7 Faults*2)	1,680
General Cost	3,600

Computation of general breaks per annum =General Cost ÷Cost per break

=3,600÷9 = 400 Breaks

Computation of number of machines owned by the company = Total Breaks ÷ Number of repairs required per machine per annum

= 400 Breaks ÷ (1*2 times per annum)

= 400 Breaks ÷ (2)

= 200 machines

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote