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Segment 1 Service revenue Unit-level materials Unit-level labor Product-level selling & administrative costs Companywide facility-level costs Net income SSSSSS $ 195,000 $ Segment 2

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Segment 1 Service revenue Unit-level materials Unit-level labor Product-level selling & administrative costs Companywide facility-level costs Net income SSSSSS $ 195,000 $ Segment 2 91,000 $ (43,000) $ (25,000) $ (53,000) $ (37,000) (33,000) $ (26,500) $ (5,000) $ (5,000) 61,000 $ (2,500) If the company stops providing Segment 2: O The company's income will decrease by $3,500 per year. The company's income will increase by $2,500 per year. The company's income will decrease by $2,500 per year. The company's income will increase by $3,500 per year.

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