ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results: If the company stops providing Service 2:

Question

ServicePro provides two kinds of services. During the most recent accounting period, the two service lines produced the following operating results:  If the company stops providing Service 2:

Quizplus · Accepted Answer

If it eliminates a product line, a company can avoid the unit-level, batch-level, product-level, and segment-level facility-sustaining costs.
Relevant Revenue and Cost Data for Segment:
 11ea7feb_d1d8_a708_a768_3d6a975be5d6_TB3570_00_TB3570_00_TB3570_00 The company-wide facility-level costs are not relevant because the company will incur them whether it eliminates the segment.

ServicePro Provides Two Kinds of Services