Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 $ 926,000 470,000 Home Nursing 269,000 Meals On Wheels $ 407,000 House- keeping $ 250,000 111,000 456,000 158,000 206,000 201,000 153,000 97,000 69,100 8,700 40,300 20,100 44,200 20,900 7,600 15,700 114,800 40,700 38,700 35,400 185,200 53,800 81,400 50,000 413,300 124,100 168,000 121,200 $ 42,700 $ 33,900 $ 33,000 $ (24,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $42,700 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? 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 $ 926,000 470,000 Home Nursing 269,000 Meals On Wheels $ 407,000 House- keeping $ 250,000 111,000 456,000 158,000 206,000 201,000 153,000 97,000 69,100 8,700 40,300 20,100 44,200 20,900 7,600 15,700 114,800 40,700 38,700 35,400 185,200 53,800 81,400 50,000 413,300 124,100 168,000 121,200 $ 42,700 $ 33,900 $ 33,000 $ (24,200) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $42,700 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?
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 Discontinuing Housekeeping Program 1a Financial Advantage Disadvantage of Discontinuation Discontinuing the housekeeping program would r... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
An internal audit has been carried out recently at Midtown Health Centre, which revealed the following information. (i) Cleaning is carried out by a team of part-time cleaners, with the assistance of...
-
Describe, in human terms, why delay and jitter are bad in real time (interactive) voice and video communications. Would these same problems apply to recorded voice and video stored and played back at...
-
The average salary of Major League Baseball players on opening day from 2000 to 2012 is stored in BBSalaries and shown in the right column. a. Plot the data. b. Compute a linear trend forecasting...
-
Paul and Donna Decker are married taxpayers, ages 44 and 42, respectively, who file a joint return for 2021. The Deckers live at 1121 College Avenue, Carmel, IN 46032. Paul is an assistant manager at...
-
What are the different types of organizational forms that corporations use for international operations?
-
The Stockholders Equity section of the balance sheet for Lahey Construction Company at the end of 2010 is as follows: 9%, $10 par, cumulative preferred stock, 500,000 shares authorized, 200,000...
-
current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows: Inventory Sales Cash Accounts receivable, net Total current assets Current...
-
Earlier in the module, you learned about the HR policies and practices that are viewed as most effective in achieving disability inclusion goals. (Go back and review them if you need to.) Why do you...
-
Solve the following differential equation. (2xsiny-y+x)dx+ (x'cosy - 3xy2-2y)dy = 0
-
Suppose the current spot rates are $.135/MXN ask and $.133/MXN bid, combined with current spot rates of .775/$ ask and .765/$ bid. What are the /MXN bid and /MXN ask prices? (to 4 decimal places)...
-
In assessing data that fell into two phenotypic classes, a geneticist observed values of 800: 680. She decided to perform a chi-square analysis by using the following null hypothesis: The data fit...
-
How do individual differences and diversity contribute to the dynamics of team performance in a multicultural organization? Explain
-
Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1 of the current year, Banek Inc. issued $ 7 7 0 , 0 0 0 of 8 % , nine year bonds for $ 6 7 9 , 9 9 0 , which...
-
Discuss the important role of women in international management and the unique challenges faced by them?
-
Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.
-
Assuming that the web acts like a spring, what is the spring constant of the web? A. \(0.039 \mathrm{~N} / \mathrm{m}\) B. \(0.39 \mathrm{~N} / \mathrm{m}\) C. \(3.9 \mathrm{~N} / \mathrm{m}\) D....
-
Given what you have calculated for the period of the full oscillation in this model, what is the landing-to-liftoff time for the stretch and rebound of the sprinter's foot? A. \(0.050 \mathrm{~s}\)...
-
If we imagine a full cycle of the oscillation, with the woman bouncing up and down and the tendon providing the restoring force, what will her oscillation period be? A. \(0.10 \mathrm{~s}\) B. \(0.15...
Study smarter with the SolutionInn App