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	$	110,000		$	40,000
Unit-level materials	$	(26,000	)	$	(8,000	)
Unit-level labor	$	(36,000	)	$	(20,000	)
Product-level selling & administrative costs	$	(16,000	)	$	(9,500	)
Company wide facility-level costs	$	(4,000	)	$	(4,000	)
Net income	$	28,000		$	(1,500	)

If the company stops providing Service 2:

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