A & L Mechanical sells and services plumbing, heating, and air-conditioning systems. A & L’s cost accounting system tracks two cost categories: direct labor and
direct materials. A & L 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 central air conditioning in Michelle Lowry’s home stops working. A & L
technician Tony Dickenson arrives at Lowry’s home and inspects the air conditioner. He considers two options:
replace the compressor or repair it. The cost information available to Dickenson follows:
Labor Materials
Repair option 7 hrs. $120
Replace option 4 hrs. $230
Labor rate $45 per hr.
1. If Dickenson presents Lowry 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 Lowry intends to live in the home, which
option would she choose?
3. If Dickenson’s objective is to maximize profits, which option would he recommend to Lowry? What
would be the ethical course of action?

Describe the three different ways the argument section of a cover letter can be formatted

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This problem has been solved! see the answercompute and interpret altman's z-scoresfollowing is selected financial information for ebay, for its fiscal years 2005 and 2006.(in millions, except per share data) 2006 2005current assets $ 4,970.59 $ 3,183.24current liabilities 2,518.39 1,484.93total assets 13,494.01 11,788.99total liabilities 2,589.38 1,741.00shares outstanding 1,368.51 1,404.18retained earnings 4,538.35 2,819.64stock price per share 30.07 43.22sales 5,969.74 4,552.40earnings before interest and taxes 1,439.77 1,445.18compute and interpret altman z-scores for the company for both years. (do not round until your final answer; then round your answers to two decimal places.)2006 z-score = answer2005 z-score = answerwhich of the following best describes the company's likelihood to go bankrupt given the z-score in 2006 compared to 2007.the z-score in 2006 is half of the 2005 score. both z-scores are well above the score that represents a healthy company.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly increased the risk of bankruptcy.the z-score in 2006 is half of the 2005 score. the z-score has decreased sharply, which suggests the company is in financial distress.the z-score in 2006 is double the 2005 score. the z-score has increased sharply, which suggests the company has greatly lowered the risk of bankruptcy.