Problem 13-19 (Algo) Dropping or Retaining a Segment [LO13-2] 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: Home Meals On House - Total Nursing Wheels keeping Revenues $ 933, 080 $ 270,000 $ 409, 000 808 '+97 $ Variable expenses 469, 080 114, 080 080 '66T 156, 080 Contribution margin 464, 080 156, 080 210, 080 98, 080 Fixed e Depreciation 806 65 8, 680 809 0+ Liability insurance 43, 008 20, 608 7, 208 15, 208 Program administrators' salaries 806 '+TT 40, 100 38, 580 BBE '9E General administrative overhead* 186, 606 54, 080 81, 808 808'05 Total fixed expenses 414, 408 123, 308 BOT. '891 123, 080 Net operating income (loss) $ 49, 600 $ 32, 700 $ 41, 908 $ (25, 080) 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 $49,600 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: a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? -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? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?