Requirement 1. If Auden presents Burke with the replace or repair options, what price would he quote for each? For the repair option Auden would quote Data table During a hot summer day, the central air conditioning in Tara Burke's home stops working. R & R technician Tony Auden arrives at Burke's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Auden follows: Labor Materials Repair option 4 hrs. $160 Replace option 1 hrs. $240 Labor rate $20 perhour Requirements If Auden presents Burke with the replace or repair options, what

R \& R Mechanical sells and services plumbing, heating, and air conditioning systems. R \& R's cost accounting system tracks two cost categories: direct labor and direct materials. R \& R uses a time-and-materials pricing system, with direct labor marked up 100% 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 Requirement 1. If Auden presents Burke with the replace or repair options, what price would he quote for each? For the repair option Auden would quote Data table During a hot summer day, the central air conditioning in Tara Burke's home stops working. R \& R technician Tony Auden arrives at Burke's home and inspects the air conditioner. He considers two options: replace the compressor or repair it. The cost information available to Auden follows: Requirements 1. If Auden presents Burke 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 Burke intends to live in the home, which option would she choose? 3. If Auden's objective is to maximize profits, which option would he recommend to Burke? What would be the ethical course of action