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

question 10

Multiple Choice

ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: $\begin{array}{lrl}&\text { Service } 1&\text { Service } 2\\\text { Service revenue } & \$ 120,000 & \$ 48,000 \\\text { Unit-level materials } & \$(28,000) & \$(10,000) \\\text { Unit-level labor } & \$(38,000) & \$(22,000) \\\text { Product-level selling \& administrative costs } & \$(18,000) & \$(11,500) \\\text { Company wide facility-level costs } & \underline{\$(6,000) }&\underline{\$(6,000) }\\\text { Net income (loss) } & \underline{\$ 30,000}&\underline{\$(1,500) }\end{array}$ If the company stops providing Service 2:

• A) The company's income will decrease by $4,500 per year.
• B) The company's income will increase by $4,500 per year.
• C) The company's income will increase by $5,500 per year.
• D) The company's income will decrease by $5,500 per year.

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Definitions:

Incremental Intelligence

The belief that intelligence can grow and change with effort, challenge, and practice, reinforcing the concept of a growth mindset.

Challenging Tasks

Activities or problems that require significant effort, skill, or understanding to complete, often leading to learning and growth.

Triarchic Intelligence

A theory by Robert Sternberg, categorizing intelligence into analytical, creative, and practical dimensions.

Quantitative IQ

A measure of an individual's intellectual capacity that focuses on mathematical, logical reasoning, and problem-solving abilities.