This one is stalling me. If you are able to help me with the answer can you please explain how to figure it? thank you!
Norvell Lawn Care offers three lawn care services to its clients. The revenues and costs associated with each service
follow:
Full Service
Complete Service
Minimum Service
Revenues
$ 60000
$ 72000
$48000
Cost of Sales
42000
43200
25000
Product Margin
18000
28800
23000
Facility-sustaining costs
20000
20000
20000
Profit
(2000)
8800
3000
Norvell wants to discontinue Full Service. The facility-sustaining costs are related to depreciation on the equipment and insurance and
are allocated equally across all product lines. Cost of sales includes wages gasoline and lawn chemicals consumed. Should Norvell drop Full Service? Why?