V Service Emphasis The following analysis of selected data is for each of the two services Gates Corporation provides Service A Service Per service data at 10.000 services Sales price $35 Service costs Variable 10 Fixed 6 Selling and administrative expenses Variable 5 3 Fixed 3 9 4 1 In the Gates operation, labor capacity is the company's constraining resource. Each unit of Arequires 3 hours of labor, and each unit of 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 $ Revenue Less: Variable cost Contribution margin Labor hours per unit Contribution margin per bor hours $ 5 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 51 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 Senica