ServicePro Provides Two Kinds of Services If the Company Stops Providing Service 2:
A) the Company's

Multiple Choice

ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: $\begin{array}{lrl}&\text { Service } 1&\text { Service } 2\\\text { Service revenue } & \$ 80,000 & \$ 20,000 \\\text { Unit-level materials } & \$(20,000) & \$(2,000) \\\text { Unit-level labor } & \$(30,000) & \$(14,000) \\\text { Product-level selling \& administrative costs } & \$(10,000) & \$(2,500) \\\text { Company wide facility-level costs } & \underline{\$(5,000) }&\underline{\$(5,000) }\\\text { Net income (loss) } & \underline{\$ 15,000}&\underline{\$(3,500) }\end{array}$ If the company stops providing Service 2:

A) The company's income will decrease by $1,500 per year.
B) The company's income will increase by $1,500 per year.
C) The company's income will decrease by $3,500 per year.
D) The company's income will increase by $3,500 per year.