Jones County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live
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Question:
Jones County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Atlantic County area. Three services are provided for seniorshome nursing, mealsonwheels, and housekeeping. Data on revenue and expenses for the past year, follow:
Total Home Nursing Meals On Wheels Housekeeping
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.
The head administrator of Jones County Senior Services, Judith Miyama, considers last years net operating income of $ 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, and the depreciation expense remains for the analysis. None of the general administrative overhead would be avoided if the housekeeping program were dropped, the liability insurance and the salary of the program administrator would be avoided. Can you answer the question in an excel format and Prepare a memo with a decision. Would you keep or discontinue the Housekeeping program?
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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