Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides. Service G Service H Per-unit data at 10,000 services Sales price $31 $18 Service costs: Variable 8 8 Fixed 6 4 Selling and administrative expenses: Variable Fixed 5 3 2 1 In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of G requires 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 G H Revenue Less: Variable cost Contribution margin $ 310,000 x S 130,000 x 180,000 * $ 180,000 x 100,000 x 80,000 x Labor hours per unit 3 Contribution margin per labor hour $ 6 S 1 8 Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service G. Any 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. Mark 1.00 out of 1.00