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8.  A major difference between the North and South was that the:

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 80​% 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. During a hot summer​ day, the R & R central air conditioning in Tara Brigg​'s home stops working. R & R technician Kevin Dickenson arrives at Brigg​'s home and inspects the air conditioner. He considers two​ options: replace the compressor or repair it. The cost information available to Dickenson ​follows:

1. If Dickenson presents Brigg with the replace or repair​ options, what price would he quote for​ each? Complete the table below to determine the price Dickenson would quote for each option.

2. If the two options were equally effective for the 3 years that Brigg intends to live in the​ home, which option would she​ choose? Briggis likely to choose to (Repair/Replace) the compressor.
3. If Dickenson​'s objective is to maximize​ profits, which option would he recommend to Brigg​? What would be the ethical course of​ action? If Dickenson is interested in maximizing​ profits, he may be tempted to --- a) only offer Brigg the repair option, b) Only offer Brigg the replace option
The ethical course of action would be to --- ? a)present Brigg only with the higher cost option, b) present Brigg only with the lower cost option and c) present Brigg with both options, and let her choose.

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