Question: P13-30 (book/static) Question Help C & S Mechanical sells and services plumbing, heating, and air conditioning systems. C & S's cost accounting system tracks two

P13-30 (book/static) Question Help C & S Mechanical sells and services plumbing, heating, and air conditioning systems. C & S's cost accounting system tracks two cost categories: direct labor and direct materials. C &S uses a time-and-materials pricing system with direct labor marked up 90% and direct materials marked up 40% 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.) Read the requirements Requirement 1. If Anderson presents Lee with the replace or repair options, what price would he quote for each? Complete the table below to determine the price Anderson would quote for each option Labor Materials Total Price Repair option Replace option Data Table Requirements During a hot summer day, the central air conditioning in Brooke Lee's home stops working. C & S technician John Anderson arrives at Lee's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Anderson follows 1. If Anderson presents Lee with the replace or repair options, what price would he 2. If the two options were equally effective for the 3 years that Lee intends to live in the 3. If Anderson's objective is to maximize profits, which option would he recommend to quote for each? home, which option would she choose? Lee? What would be the ethical course of action? Labor 5 hrs 2 hrs S30 per hour Materials Repair option Replace option $140 Print Done Labor rate Print Done
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