Sunshine Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within Southern California. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow: 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. Home Meals On House- Total Nursing Wheels keeping $925,000 $269,000 $400,000 $256,000 472,000 120,000 197,000 155,000 453,000 149,000 203,000 101,000 69,600 8,500 40,700 20,400 43,700 20,300 7,600 15,800 115,000 40,200 38,800 36,000 185,000 53,800 413,300 122,800 80,000 167,100 51,200 123,400 $ 39,700 $ 26,200 $ 35,900 $(22,400) The head administrator of Sunshine Services, Patsy Pearsall, considers last year's net operating income of $39,700 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 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. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Financial (disadvantage) Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin 0 0 0 0 Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses 0 0 0 Program segment margins 0 0 0 GA 0 0 General administrative overhead Net operating income (loss) 0