Question: lem 11-19 Dropping or Retaining a Segment [L011-2] on County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live

 lem 11-19 Dropping or Retaining a Segment [L011-2] on County Senior
Services is a nonprofit organization devoted to providing essential services to seniors
who live in thel s within the Jackson County area. Three services

lem 11-19 Dropping or Retaining a Segment [L011-2] on County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in thel s within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekee on revenue and expenses for the past year follow 918,000 $268,000 400,000 250,000 riable expenses ntribution margin 478,000119,000 208,000 151,000 440,000 149,000 192 ,000 99,000 69,800 8,900 40,300 20,600 44,00020,900 7,600 15,500 115,900 40,400 38,500 37,000 183,600 53,60080,000 13,300 123,800 166,400 123.100 26,700 25,200 25,600 $(24,100) Depreciation Program adninistrators salaries General adniniatrative overhead* otal fixed expenses et operating income (loss) 50.000 located on the basis of program revenues. e head administrat& of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $26,700 to e unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program he depreclation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If the rogram were discontinued, the van would be donated to a charitable organization. None of the general administrative overhead ould be avoided if the housekeeping program were dropped, but the liability insurance and the salary of the program administrator ould be avoided Required -a. What is the financial advantage (disadvantage) of discontinuling the Housekeeping program? 1-b. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2-b. Would a seamented income statement format be more useful to management in assessing the lona-run financial viability of the 9 3 4 5 7

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