Problem 11-19 Dropping or Retaining a Segment (LO11-2] Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors in their own homes within the Jackson County area. Three services are provided for seniors-home nursing, M Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Meals House- Home On Total Nursing Wheels keeping $926,000 $267,000 $407,000 $ 252,000 471.000 114.000 205.000 152.000 455,000 153,000 202.000 100.000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (Loss) 69,700 8,200 40,700 20,800 43,100 20,400 7,400 15,300 114,700 40,200 38,100 36,400 185.200 53,400 81,400 50,400 412,200 123,200 167.600 122,900 $ 42,300 $ 30,800 $ 34,400 $(22,900) "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 $42,300 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. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. 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 Reg 1B Req 2A Reg 28 Would a segmented Income statement format be more useful to management in assessing the long run financial viability of the various services