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Question 8 Incomplete answer Marked out of 11.00 Flag question Service Emphasis The following analysis of selected data is for each of the two services
Question 8 Incomplete answer Marked out of 11.00 Flag question Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B Per-service data at 10,000 services Sales price $35 $29 Service costs: Variable 10 Fixed 6. Fixed " Selling and administrative expenses: Variable 5 3 Fixed 3 1 4 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 Service A 0 Revenue $ Less: Variable cost Contribution margin $ Labor hours per unit Contribution margin per labor hour $ D 0 $ 0 0 0 CAny unused capacity should be devoted to Service B, which has $1 less contribution margin per labor hour than does Service A. CAny unused capacity should be devoted to Service A, which has $1 more contribution margin per labor hour than does Service A. CAny unused capacity should be devoted to Service B, which has $1 more contribution margin per labor hour than does Service A. Please answer all parts of the
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