Question: Jackson County Senlor Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County
Jackson County Senlor 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. Meais On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: -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 $44,500 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 administradve overhesd would be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator would be avoided. Required: 1a. What is the financial advantage (disadvantoge) of discontinuing the Housekeeping program? 1.b. Bosed on the financial advantage (disadvantage) of discontinuing the Housekeoping program calculated in requirement Req 1 A, should the Housekeeping program be discontinued? 2-a. Prepare a properiy formatted segmented income statement. 2-b. Would a segmented income statement format be more useful to management in assessing the long-tun financial viability of the various services
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