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: $$\begin{array} { l l l l } & \text { Service } 1 &{ \text { Service } 2 } \\\text { Service revenue } & \$ 80,000 & \$ 20,000 \\ \text { Unit-level materials } & \$ ( 20,000 ) & \$ ( 2,000 ) \\\text { Unit-level labor }& \$ ( 30,000 ) & \$ ( 14,000 ) \\\text { Product-level selling \& adrninistrative costs } & \$ ( 10,000 ) & \$ ( 2,500 ) \\\text { Comparywide facility-level costs } & \underline{\$ ( 5,000 ) } &\underline{ \$ ( 5,000 ) } \\\text { Net income }&\underline{ \$ 15,000 }& \underline{\$ ( 3,500 ) }\end{array}$$ 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.