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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 revenue Unit-level
ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: Service revenue Unit-level materials Unit-level labor Product-level selling & administrative costs Company wide facility-level costs Net income (loss) Service 1 Service 2 $130,000 $ 54,000 $(12,000) $(30,000) $(40,000) $(20,000) $(24,000) $(13,500) $ (8,000) $ (8,000) $ 32,000 $ (3,500) If the company stops providing Service 2:
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