Answer Happy

ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: Service revenue Unit-level materials Unit-level labor Product-level selling & administrative costs Company wide facility-level costs Net income (loss) If the company stops providing Service 2: Service 2 $ 25,000 $ (3,000) Service 1 $ 85,000 $(21,000) $(31,000) $(15,000) $(11,000) $ (6,000) $ 16,000 $ (4,500) $ (6,000) $ (3,500)

Multiple Choice O O The company's income will decrease by $2,500 per year. The company's income will increase by $3,500 per year. The company's income will increase by $2,500 per year. The company's income will decrease by $3,500 per year.