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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
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 | $ | 135,000 | $ | 55,000 | |||
Unit-level materials | $ | (31,000 | ) | $ | (13,000 | ) | |
Unit-level labor | $ | (41,000 | ) | $ | (25,000 | ) | |
Product-level selling & administrative costs | $ | (21,000 | ) | $ | (14,500 | ) | |
Company wide facility-level costs | $ | (6,000 | ) | $ | (6,000 | ) | |
Net income (loss) | $ | 36,000 | $ | (3,500 | ) | ||
If the company stops providing Service 2:
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