Service Costing

A taxi company can operate a taxi for a maximum of 1,600 hours per year. It generates revenue of $50 per hour and has variable running costs of $30 per hour. The fixed costs are charged at $10 per hour.
The company is evaluating two options for the taxi maintenance.
Option 1:
Remedial maintenance:
This is caused by an average four breakdowns and will mean the taxi is unavailable for 18 hours per year. Remedial maintenance costs are $55 per hour
Option 2:
Preventive maintenance:
This will entail the taxi undergoing three intensive services over the year, each of which will take five hours. Preventive maintenance costs are $75 per hour.
Task 1: (3 marks)
The company wishes to choose the most economic method of maintaining a taxi. Calculate the net annual relevant cost per taxi of the two options which will allow them to make the decision.
Option 1: Remedial maintenance $……………..
Option 2: Preventive maintenance $……………

Doubt:

Will the loss of cashflow be relevant for remedial and prevention maintenance due to unavailability of taxi?

There shouldn’t be any loss of cashflow for preventive maintenance as we will be scheduling it in our unproductive time so there won’t be any loss of cashflow, right??