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R&J Mechanical sells and services plumbing, heating, and air conditioning systems. R & J's cost accounting system tracks two cost categories: direct labour and direct
R&J Mechanical sells and services plumbing, heating, and air conditioning systems. R \& J's cost accounting system tracks two cost categories: direct labour and direct materials. R \& J uses a time-and-materials pricing system, with direct labour marked up 90% and direct materials marked up 60% to recover indirect costs of support staff, support materials, and shared equipment and tools and to earn a profit. (Click the icon to view the cost information.) Required Requirement 1. If Austen presents Lackey with the replace or repair options, what price would he quote for each? Complete the table below to determine the total price Austen would quote for each option. (Round your answers to the nearest whole dollar.) Cost information During a hot summer day, the central air conditioning in Bethany Lackey's home stops working. R \& J technician Tomas Austen arrives at Lackey's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Austen follows: Required 1. If Austen presents Lackey with the replace or repair options, what price would he quote for each? 2. If the two options were equally effective for the 3 years that Lackey intends to live in the home, which option would she choose? 3. If Austen's objective is to maximize profits, which option would he recommend to Lackey? What would be the ethical course of action
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