[Question]

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:

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The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $45,000 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-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?

1-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 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 question by entering your answers in the tabs below.

[see image Req1A-Req2B]

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 seniorshome nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: Hone Meals On House Total Nursing Hheels keeping Revenues 5 926,666 5 252,666 5 464,666 5 254,666 Variable expenses 455,606 114,606 192,606 15?,606 Contribution margin 452,666 143,606 212,606 92,666 Fixed expenses: Depreciation ?6,366 3,606 46,306 26,966 Liability insurance 45,?66 26,566 ?,366 15,966 Program administrators' salaries 114,666 46,?66 33,666 35,366 General administrative overhead\" 184,606 52,406 86,306 56,306 Total fixed expenses 412,666 122,266 156,966 122,966 Net operating income (loss) 5 45,606 5 25,366 5 45,106 5(25,966) *Allocated on the basis of program revenues. "he head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $45,000 to be unsatisfactory; therefore, she is considering the possibility of discontinuing the housekeeping program. "he depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment fromjob to job. If the program were discontinued, the van would be donated to a charitable organization. None ofthe 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: 1a. What is the nancial advantage {disadvantage} of discontinuing the Housekeeping program? 1-b. Based on thefina ncial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req1A, should the Housekeeping program be discontinued? Za. 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 labs below. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program?Reg 1A Reg 13 Reg 2A Reg 23 Based on the nancial advantage {disadvantage} of discontinuing the Housekeeping program calculated in requirement Reg 1A, should the Housekeeping program be discontinued? Prepare a properly formatted segmented income statement. Revenues 1|ul'an'able expenses Contribution margin Traceable xed expenses: Depreciation Liability insurance Program administrators salaries Total traceable xed expenses Program segment margins General administrative overhead Net operating income {loss}