Question: Answer both part A and part B please Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their

Answer both part A and part B please

Answer both part A and part B please Jackson County Senior Services

Jackson County Senior Services is a nonprofit organization providing three services to seniors who live in their own homes-home nursing, Meals on Wheels, and housekeeping. Revenue and expense data for the past year follow: Home Meals on Total Nursing Wheels Housekeeping Revenues $ 915, 000 $ 265, 000 $ 400, 000 $ 250, 000 Variable expenses 464, 000 115, 000 198, 000 151, 000 Contribution margin 451, 000 150, 000 202, 000 99, 000 Fixed expenses : Depreciation 70, 400 8, 500 41, 000 20, 900 Liability insurance 43, 100 20, 500 7 , 400 15, 200 Program administrators' salaries 116, 100 40, 300 38 , 800 37 , 000 General administrative overhead* 183, 000 53 , 000 80, 000 50, 000 Total fixed expenses 412, 600 122, 300 167 , 200 123, 100 Net operating income ( loss) $ 38, 400 $ 27, 700 $ 34, 800 $ (24, 100) *Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyama, is considering discontinuing the housekeeping program. The depreciation in housekeeping is for a small van used to carry the housekeepers and their equipment from job to job. If the program were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead would be avoided if the housekeeping program was dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued

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