Aurora Refrigeration & Air Conditioning sells & services refrigerators and air conditioning systems. Aurora has 2 main cost categories, direct labour & direct materials. Aurora sets their prices based on direct labour being marked up 90% and direct materials being marked up 40% to recover the indirect costs of support staff, indirect materials & small tools. Aurora received a call from Philip Prince saying that his air conditioning had stopped working. A technician with Aurora was sent out & they inspected the air conditioning unit and determined that the compressor wasn't working. The technician feels that Philip has 2 choices; repair the compressor or replace it. The cost information to repair or replace is listed below: Labour Repair option 4 hours Replace option $280 Materials $170 3 hours Labour rate $38/hour Required: 1. If Aurora presents Philip with the replace or repair options, what price would they quote for each option 2. If the two options will enable the air conditioning unit to work efficiently for the next 4 years and Philip only plans to live in the house for the next 3 years, which option should he choose? 3. Aurora's objective is to maximize profits, which option would they recommend to Philip? What would be the ethical course of action