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 $195,000 $ 91,000 $(43,000) $(25,000) $(53,000) $(37,000) $(33,000) $(26,500) $ (5,000) $ 61,000 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: Multiple Choice The company's income will decrease by $2,500 per year. The company's income will decrease by $3.500 per veer $ (5,000) $ (2,500)
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 $195,000 $ 91,000 $(43,000) $(25,000) $(53,000) $(37,000) $(33,000) $(26,500) $ (5,000) $ 61,000 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: Multiple Choice The company's income will decrease by $2,500 per year. The company's income will decrease by $3.500 per veer $ (5,000) $ (2,500)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2.
Transcribed Image Text:If the company stops providing Service 2:
Multiple Choice
O
O
The company's income will decrease by $2,500 per year.
The company's income will decrease by $3,500 per year.
The company's income will increase by $3,500 per year.
The company's income will increase by $2,500 per year.
Transcribed Image Text:ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results:
Service 1
$195,000
Service 2
$ 91,000
$(43,000) $(25,000)
$(53,000) $(37,000)
$(33,000)
$(26,500)
$ (5,000)
$ 61,000
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:
Multiple Choice
The company's income will decrease by $2,500 per year.
The company's income will decrease bv $3.500 per veer
$ (5,000)
$ (2,500)
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