Fran is considering permanently closing down her beauty salon. A consultant advises her that if she stays open for business, she will have operating revenues of $300,000 and operating costs of $280,000. In addition, Fran has paid $40,000 for fixtures that can be resold for $15,000 after she closes the beauty salon. Explain whether Fran should close down the beauty salon.

Operating revenue, R = $300000

Operating Cost, C = $280000

Fixed Cost, F = $40000

Salvage value of fixtures, S = $15000

If it remains open, its value will be = R - C - F + S = 300000 - 280000 - 40000 + 15000 = -$5,000

If the salon closes down, its value will be = S - F = 15000 - 40000 = -$25000 .

Fran should remain open as the value of the salon if remaining open (-$5,000) is more than the value of closing it (-$25,000).

step 1: create a plan

step 2: inventory facility equipment/assets

step 3: create preventive maintenance procedures

step 4: create preventive maintenance schedules

step 5: train your maintenanceteam

step 6: analyze – adjust - improve

or

step 1 – pm procedure design: doing the effective things

step 2 – pm procedure scheduling: efficient use of people and resources

step 3 – pm lubrication engineering

step 4 – pm training: back on the chain gang

step 5 – pm program management plan

step 6 – communicate, communicate, communicate

answer; ///blank(1); rate-buster; blank(2) systematic soldiering;