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This paper deals with the cost analysis of a repairable system subject to deterioration. The system has three different modes: normal, deterioration and failure. The deterioration can be minor, medium or major. Failure time follows an exponential distribution, while repair time rate and preventive maintenance follow a general distribution. We analyzed the system using supplementary variable technique and developed explicit expressions for availability, busy period and profit function for the system. Laplace transforms of the probabilities of the states of the system have been obtained. Availability, steady-state availability, mean time to system failure (MTSF), and the profit function of the system are studied. Tables and graphs have also been given at the end. Based on assumed numerical values given to the system parameters, some particular cases have also been discussed graphically to see the effect of deterioration, failure and repair rates on profit. The results have indicated that deterioration and failure rates decrease the profit while repair and major maintenance rates increase the profit.

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