Question
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) If the company stops providing Service 2: Service 1 Service 2 $195,000 $ 91,000 $(25,000) $(43,000) $(53,000) $(33,000) $(37,000) $(26,500) $ (5,000) $ (5,000) $ 61,000 $ (2,500) Multiple Choice The company's income will decrease by $2,500 per year. The company's income will decrease by $3.500 per year.
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