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ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating Service 1 Service 2
ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating Service 1 Service 2 Service revenue $ 165,000 $ 72,000 Unit-level materials $ (37,000) $ (19,000) Unit-level labor $ (47,000) $ (31,000) Product-level selling & administrative costs $ (27,000) $ (20,500) $ (6,000) $ (6,000) Company wide facility-level costs Net income (loss) If the company stops providing Service 2: Multiple Choice the company's income will increase by $1,500 per year. the company's income will decrease by $2,500 per year. the company's income will increase by $2,500 per year. the company's income will decrease by $1,500 per year. $ 48,000 $ (4,500)
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