ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: Service 1Service 2 $145,000 60,000 (33,000) (15,000) $ (43,000) (27,000) (23,000) (16,500) $ (3,000) (3,000) $43,000 (1,500) Service revenue Unit-level materials Unit-level labor Product-level selling & administrative costs 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 increase by $2,500 per year. Benitez Company currently outsources a relay switch that is a component in one of its products. The switches cost $24 each. The company is considering making the switches internally at the following projected annual production costs: Unit-level material cost Unit-level labor cost Unit-level overhead Batch-level set-up cost (7,000 units per batch) Product-level supervisory salaries Allocated facility-level costs $33,000 $41,500 $28,000 The company expects an annual need for 7,000 switches. If the company makes the product, it will have to utilize factory space currently being leased to another company for $2,300 a month. If the company decides to make the parts, total costs will be: Multiple Choice $18,100 more than if the switches are purchased. $46,100 more than if the switches are purchased