Reference: Survey of Accounting 6th edition Book

Based on Chapter 13

These are practice study questions

ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: Service 1 Service 2 Service revenue $150, 000 $ 65,000 Unit- level materials $ (34, 000) $ (16, 000) Unit- level labor $ (44, 000) $ (28, 060) Product-level selling & administrative costs $ (24, 000) $ (17, 500) Company wide facility-level costs $ (5,000) $ (5,000) Net income (loss) $ 43,006 (O0S'T) $ If the company stops providing Service 2:Multiple Choice The company's income will increase by $4,500 per year. The company's income will decrease by $3,500 per year. The company's income will decrease by $4,500 per year. GOO The company's income will increase by $3,500 per year