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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 $80,000 $20,000 Unit-level materials $(20,000) $(2,000) Unit-level labor $(30,000) $(14,000) Product-level selling & administrative costs $(10,000) $(2,500) Companywide facility-level costs $(5,000) $(5,000) Net income $15,000 $(3,500) If the company stops providing Service 2 Multiple Choice The company's income will increase by $3,500 per year The company's income will increase by $1,500 per year The company's income will decrease by $1,500 per year The company's income will decrease by $3,500 per year
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