\& S Mechanical sells and services plumbing, heating, and air conditioning systems. C \& S's cost accounting system racks two cost categories: direct labor and direct materials. C \& S uses a time-and-materials pricing system, with direc labor marked up 100% and direct materials marked up 50% to recover indirect costs of support staff, support materials, and shared equipment and tools, and to earn a profit. During a hot summer day, the C \& S central air conditioning in Lisa Smith's home stops working. C \& S technician Henry Auden arrives at Smith's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Auden follows: (Click the icon to view the cost information.) Read the requirements. Requirement 1. If Auden presents Smith with the replace or repair options, what price would he quote for each? Complete the table below to determine the price Auden would quote for each option. Requirement 2. If the two options were equally effective for the 3 years that Smith intends to live in the home, which option would she choose? Smith is likely to choose to the compressor. Requirement 3. If Auden's objective is to maximize profits, which option would he recommend to Smith? What would be option would she choose? Mechanical sells and services plumbing, heating, and air conditioning systems. C \& S's cost accoungstem, with direc s two cost categories: direct labor and direct materials. C \& S uses a time-and-materist support staff, support materials, t marked up 100% and direct materials marked uf ring a hot summer day, the C \& S central air conditioning in Lisa Smith's home stops working. C \& S technician anry Auden arrives at Smith's home and inspects the air conditioner. He considers two options: replace the ompressor or repair it. The cost information available to Auden follows: Click the icon to view the cost information.) Read the requirements. Requirement 2. If the two options were equally effective for the 3 years that Smith intends to live in the home, which option would she choose? Smith is likely to choose to the compressor. Requirement 3. If Auden's objective is to maximize profits, which option would he recommend to Smith? What would be the ethical course of action? II Auden is interested in maximizing profits, he may be tempted to The ethical course of action would be to
