Help Save & Exit Submit 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: Home Meals On House- Total Nursing Wheels keeping $919, eae $ 264,800 $ 401,000 $ 254,000 475, eae 113,000 206,000 156.000 444, eae 151,000 195,00 98,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (Loss) 70, 400 8,900 40,500 21,080 44,400 20.880 7,708 15,900 115,300 40,300 38,780 36,308 183,800 52,800 80,200 50.800 413,900 122,800 167.100 124, eee $ 30,100 $ 28,200 $ 27,900 $120,000) "Allocated on the basis of program revenues. The head administrator of Jackson County Senior Services, Judith Miyamo, considers last year's net operating income of $30,100 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. 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? Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Req 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?