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Required: a. Prepare a report of the differential costs and revenues if the lawn service is discontinued. (Loss amounts shoud be indicated by minus sign.)

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Required: a. Prepare a report of the differential costs and revenues if the lawn service is discontinued. (Loss amounts shoud be indicated by minus sign.) KC SERVICES Annual Income Statement Before Dropping Service After Dropping Service Sales revenue $ 608,000 Costs 240,000 192,000 32,000 64,000 32,000 80,000 $ 640,000 Operating profit (loss) (32,000) Equipment leases Labor Utilities Rent Other costs Manager's Salary Total costs b. Should Kate discontinue the lawn service? 0 Yes

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