Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who...
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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: 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 Home Nursing $ 932,000 473,000 $ 267,000 459,000 117,000 150,000 Meals On Wheels House- keeping $ 409,000 $ 256,000 200,000 156,000 209,000 100,000 68,900 8,300 40,300 20,300 44,600 20,800 8,000 15,800 114,700 40,800 38,700 35,200 186,400 53,400 81,800 51,200 414,600 123,300 168,800 122,500 $ 44,400 $ 26,700 $ 40,200 $ (22,500) 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 Home Nursing $ 932,000 473,000 $ 267,000 117,000 Meals On Wheels $ 409,000 200,000 House- keeping $ 256,000 156,000 459,000 150,000 209,000 100,000 68,900 8,300 40,300 20,300 44,600 20,800 8,000 15,800 114,700 40,800 38,700 35,200 186,400 414,600 53,400 123,300 81,800 51,200 168,800 122,500 $ 44,400 $ 26,700 $ 40,200 $ (22,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $44,400 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? Complete this question by entering your answers in the tabs below. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $44,400 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Req 1A Req 1B Req 24 Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses 0 0 0 Program segment margins 0 $ 0 $ 0 $ General administrative overhead Net operating income (loss) 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: 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 Home Nursing $ 932,000 473,000 $ 267,000 459,000 117,000 150,000 Meals On Wheels House- keeping $ 409,000 $ 256,000 200,000 156,000 209,000 100,000 68,900 8,300 40,300 20,300 44,600 20,800 8,000 15,800 114,700 40,800 38,700 35,200 186,400 53,400 81,800 51,200 414,600 123,300 168,800 122,500 $ 44,400 $ 26,700 $ 40,200 $ (22,500) 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 Home Nursing $ 932,000 473,000 $ 267,000 117,000 Meals On Wheels $ 409,000 200,000 House- keeping $ 256,000 156,000 459,000 150,000 209,000 100,000 68,900 8,300 40,300 20,300 44,600 20,800 8,000 15,800 114,700 40,800 38,700 35,200 186,400 414,600 53,400 123,300 81,800 51,200 168,800 122,500 $ 44,400 $ 26,700 $ 40,200 $ (22,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $44,400 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? Complete this question by entering your answers in the tabs below. The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $44,400 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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Req 1A Req 1B Req 24 Req 2B Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses 0 0 0 Program segment margins 0 $ 0 $ 0 $ General administrative overhead Net operating income (loss)
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Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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