Question

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 0 Answer 0 Less: Variable cost Answer 0 Answer 0 Contribution margin Answer 0 Answer 0 Labor hours per unit Answer 0 Answer 0 Contribution margin per labor hour Answer 0 Answer 0 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. Please answer all parts of the question. either of those and id be golden

Answer 1

Answer

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Explanation  

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