ces Problem 11-19 (Algo) Dropping or Retaining a Segment [LO11-2] 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 seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead. Total fixed expenses Net operating income (loss) "Allocated on the basis of program revenues. Total $ 931,000 480,000 Home Nursing $267,000 120,000 Meals On Wheels $ 408,000 House- keeping $256,000 207,000 153,000 451,000 147,000 201,000 103,000 69,500 8,400 40,800 20,300 43,800 20,600 7,700 15,500 115,700 40,900 38,700 36,100 186,200 53,400 81,600 51,200 415,200 123,300 168,800 123,100 $ 35,800 $ 23,700 $ 32,200 $ (20,100) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $35,800 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. 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 Check my work