ANSWER IN GREAT DETAIL AND ANSWER EVERY ASPECT. ANSWER THE 2 QUESTIONS AT THE BOTTOM:

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided for seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow:

	Total	Home Nursing	Meals On Wheels	House-keeping
Revenues	$ 921,000	$ 263,000	$ 403,000	$ 255,000
Variable expenses	475,000	119,000	205,000	151,000
Contribution margin	446,000	144,000	198,000	104,000
Fixed expenses:
Depreciation	69,700	8,300	40,500	20,900
Liability insurance	43,200	20,200	7,300	15,700
Program administrators' salaries	114,400	40,500	38,800	35,100
General administrative overhead*	184,200	52,600	80,600	51,000
Total fixed expenses	411,500	121,600	167,200	122,700
Net operating income (loss)	$ 34,500	$ 22,400	$ 30,800	$ (18,700)

*Allocated on the basis of program revenues.

The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $34,500 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program.

The depreciation in housekeeping is for a small van that is 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 were dropped, but the liability insurance and the salary of the program administrator would be avoided.

HERE IS THE EXCEL:

	Total	Home Nursing	Meals On Wheels	House-keeping
Revenues	$ 919,000	$ 265,000	$ 402,000	$ 252,000
Variable expenses	$458,000	$112,000	$193,000	$153,000
Contribution margin	$461,000	$153,000	$209,000	$99,000
Fixed expenses:
Depreciation	$69,500	$8,100	$40,800	$20,600
Liability insurance	$43,200	$20,200	$7,500	$15,500
Program administrators' salaries	$116,300	$40,800	$38,800	$36,700
General administrative overhead*	$183,800	$53,000	$80,400	$50,400
Total fixed expenses	$412,800	$122,100	$167,500	$123,200
Net operating income (loss)	$ 48,200	$ 30,900	$ 41,500	$ (24,200)
1-a: What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?
Contribution margin of housekeeping	$(99,000)
Liability insurance	$15,500
Program administrators' salaries	$36,700
Financial advantage(Disadvantage)	$(46,800)
1-b: Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued?
No
2-a: make a properly formatted segmented income statement.	Total	Home Nursing	Meals on Wheels	Housekeeping
Revenues	$ 919,000	$ 265,000	$ 402,000	$ 252,000
Variable Expenses	$458,000	$112,000	$193,000	$153,000
Contribution Margin	$461,000	$153,000	$209,000	$99,000
Traceable Fixed Expenses:
Depreciation	$69,500	$8,100	$40,800	$20,600
Liability Insurance	$43,200	$20,200	$7,500	$15,500
Program administrators' salaries	$116,300	$40,800	$38,800	$36,700
Total traceable fixed expenses	$229,000	$69,100	$87,100	$72,800
Program segment margins	$232,000	$83,900	$121,900	$26,200
General administrative overhead	$183,800
Net operating income (loss)	$48,200
2-b: Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services?
Yes

PLEASE ANSWER THE NEXT 2 QUESTIONS:

1. Why was there a financial disadvantage of cancelling the housekeeping program? Be specific on the 3 factors which gave you the results and explain.

2. Consider the financial impact of canceling the housekeeping program, Home Nursing has a profitability of $30,900 and Meals on Wheels a profitability of $41,500. How would these programs be impacted if housekeeping was cancelled? ANSWER IN GREAT DETAIL AND ANSWER EVERY ASPECT!