Homework Answers
Service revenue from service 2 = $28,000
Total of material, labour and selling and administrative cost = $4,000 + $16,000 + $5,500 = $25,500
Service revenue - Total cost = $28,000 - $25,500 = $2,500
If Service 2 is stopped, Companies income gets reduced by $2,500.
1st option.
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