Answer:
The company's income will decreases by $3,500 per year.
Step-by-step explanation:
Present Net Income :
Service 1 = $45,000
Service 2 = ($1,500)
Total(old) = $45,000 + ($1,500)
= $43,500
After closing of service 2 :
Service 1 = $45,000
Company wide facility-level costs allocated to for service 2 = (5,000)
Total(new) = Service 1 present income + Company wide facility-level costs
= $45,000 + (5,000)
= $40,000
Decrease in income = Total(old) - Total(new)
= $43,500 - $40,000
= $3,500
Therefore, the company's income will decrease by $3,500 per year.