hw 13 q2: answer req 1-2b

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 Total $.929,000 473.000 456,000 Home Nursing $ 263,000 120,000 143,000 Heals on Wheels $. 407.000 195,000 212,000 House keeping $ 259,000 158.000 192,000 Revenues Variable expenses Contribution margin Fixed expensest Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,100 44,500 114, 580 165,800 413,900 $.42,100 8,200 20,900 40,300 52,600 122,000 $ 21,000 40,880 7,700 38,800 81,400 168, 700 $ 43,300 28, 100 15,900 35.400 51,800 123.200 $ (22,200) "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 $42.100 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 jobs. 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 ability 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 16. Based on the financial advantage (disadvantage of discontinuing the Housekeeping program calculated in regiment Regt should the Housekeeping program be discontinued? 2a Prepare a property formatted segmented income statement 25 Would a segmented income statement format be more useful to management in assessing the long rancal viability of the various services? Complete this question by entering your answers in the tabs below. Bog IA R18 Heg 2 Red 20 What the financial advantage (disadvantage of discontinuing the Housekeeping program Reg 18 >