Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides Service G Service H $35 $22 12 12 Per-unit data at 10,000 services Sales price Service costs: Variable Fixed Selling and administrative expenses: Variable Fixed 6 4 5 2 1 3 In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of Grequires 3 hours of labor, and each unit of H requires 1 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 Rockville might have. Service s Revenue Less: Variable cost Contribution margin Labor hours per unit Contribution margin per labor hours $ S $ ave Service G H $ Revenue $ Less: Variable cost Contribution margin $ Labor hours per unit Contribution margin per labor hour $ $ Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service G. OAny unused capacity should be devoted to service G, which has $2 more contribution margin per labor hour than does Service H. Any unused capacity should be devoted to Service H, which has $2 more contribution margin per labor hour than does Service G