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	$	200,000			$	95,000
Unit-level materials	$	(44,000	)		$	(26,000	)
Unit-level labor	$	(54,000	)		$	(38,000	)
Product-level selling & administrative costs	$	(34,000	)		$	(27,500	)
Company wide facility-level costs	$	(5,000	)		$	(5,000	)
Net income (loss)	$	63,000			$	(1,500	)

If the company stops providing Service 2:

rev: 03_21_2018_QC_CS-122066

• The company's income will increase by $3,500 per year.

• The company's income will increase by $4,500 per year.

• The company's income will decrease by $4,500 per year.

• The company's income will decrease by $3,500 per year.