Chapter 13 - Homework 3 - Algorithmic 6 Saved Help Save & Exit Submit Check my work 4 Problem 13-19 (Algo) Dropping or Retaining a Segment [LO13-2] 75 points 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: X 03:36:01 Skipped Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Home Meals On House- Total Nursing Wheels keeping $ 921,000 $261,000 $ 404,000 $ 256,000 475,000 116,000 201,000 158,000 446,000 145,000 203,000 98,000 69,900 8,800 40,800 20,300 43,300 20, 200 7,400 15,700 115,600 40,900 38,300 36,400 184,200 52,200 BD, 800 51,200 413,000 122, 100 167,300 123,600 $ 33,000 $ 22,900 $ 35,700 $125,600) eBook Print "Allocated on the basis of program revenues. o References The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $33,000 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. should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services