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Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides: In the Rockville's operation, labor capacity is
Service Emphasis The following analysis of selected data is for each of the two services Rockville Corporation provides: In the Rockville's operation, labor capacity is the company's conistraining resource. Each unit of 6 tequires 3 hours of labor, and esch unit of H requses 1 hours of labar. Assuming that all services can be sold at a normal price, prepare an analysis showing which of the two services showid be provided with any anused productive cipacity this Rockville might have. Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service 6 : Any unused capacity should be devoted to Service 6 , 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. Pledse ariswer all parts of the
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