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Question 3 Incomplete answer Marked out of 2.00 P Flag question Service Emphasis The following analysis of selected data is for each of the two
Question 3 Incomplete answer Marked out of 2.00 P Flag question Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B $29 $25 - Per-service data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed 15 6 14 4 - m In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B requires 2 hours of labor. Assuming that all services can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Gates might have. In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B require that Gates might have. Revenue Less: Variable cost Contribution margin Labor hours per unit Contribution margin per labor hour $ Service 0 $ 0 0 $ 0 $ 0 0 0 0 0 Any unused capacity should be devoted to Service B, which has $1 less contribution margin per labor hour than does Service A. Any unused capacity should be devoted to Service A, which has $1 more contribution margin per labor hour than does Service A. Any unused capacity should be devoted to Service B, which has $1 more contribution margin per labor hour than does Service A
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