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 $36 $32 Service costs: Variable 10 13 Fixed 6 4 Selling and administrative expenses: Variable 5 3 Fixed 3 1 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 B Revenue $Answer $Answer Less: Variable cost Answer Answer Contribution margin $Answer $Answer Labor hours per unit Answer Answer Contribution margin per labor hour $Answer $Answer 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.