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	$	130,000			$	54,000
Unit-level materials	$	(30,000	)		$	(12,000	)
Unit-level labor	$	(40,000	)		$	(24,000	)
Product-level selling & administrative costs	$	(20,000	)		$	(13,500	)
Company wide facility-level costs	$	(8,000	)		$	(8,000	)
Net income (loss)	$	32,000			$	(3,500	)

If the company stops providing Service 2:

Multiple Choice

• The company's income will increase by $5,500 per year.

• The company's income will decrease by $5,500 per year.

• The company's income will decrease by $4,500 per year.

• The company's income will increase by $4,500 per year.