Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: 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. Total $ 926,000 476,000 450,000 Home Nursing $ 263,000 115,000 148,000 Meals On Wheels $ 405,000 207,000 198,000 House- keeping $ 258,000 154,000 104,000 69,800 8,500 40,600 20,700 43,600 20,400 8,000 15,200 115,600 40,800 38,800 36,000 185,200 52,600 81,000 51,600 414,200 122,300 168,400 123,500 $ 35,800 $ 25,700 $ 29,600 $ (19,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $35,800 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. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? < Req 1A Req 1B > 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: 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. Total $ 926,000 476,000 450,000 Home Nursing $ 263,000 115,000 148,000 Meals On Wheels $ 405,000 207,000 198,000 House- keeping $ 258,000 154,000 104,000 69,800 8,500 40,600 20,700 43,600 20,400 8,000 15,200 115,600 40,800 38,800 36,000 185,200 52,600 81,000 51,600 414,200 122,300 168,400 123,500 $ 35,800 $ 25,700 $ 29,600 $ (19,500) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $35,800 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. Req 1A Req 1B Req 2A Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? < Req 1A Req 1B >
Expert Answer:
Answer rating: 100% (QA)
To calculate the financial advantage or disadvantage of discontinuing the Housekeeping program we need to compare the net operating income with and wi... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
p = 40 + 30 In(4x + 5) (a) Find the rate of change of ou
-
The book lists many quality dimensions for both products and services. What does quality mean to you? Do you find the products and/or services meet these criteria?
-
An internal audit has been carried out recently at Midtown Health Centre, which revealed the following information. (i) Cleaning is carried out by a team of part-time cleaners, with the assistance of...
-
1. Locate a current financial news article using a source such as the following: a. www.reuters.com; b. www.yahoo.com/finance; c. http://www.msn.com/en-us/money d. www.bloomberg.com 2. Use the...
-
Burts utility function is U(x1, x2) = (x1 +2)(x2 +6), where x1 is the number of cookies and x2 is the number of glasses of milk that he consumes. (a) What is the slope of Burts indifference curve at...
-
A manager of a large chain of appliance stores is planning to conduct a pricing experiment to determine the price elasticity of the chains line of microwave ovens. He plans to measure sales for the...
-
Digital Controls Inc. makes electric thermostats for homes and offices. The Westplains division makes one product, Autotherm, that has a standard cost of $37, consisting of $22 of materials and $15...
-
A 5.00-F capacitor is initially chmged to a potential of 16.0 V. It is then connected in series with a 3.75-mH inductor. (a) What is the total energy stored in this circuit? (b) What is the maximum...
-
Human Resources Summary Andrews Baldwin Chester Digby Needed Complement Complement 615 430 556 618 615 430 556 618 1st Shift Complement 413 303 427 362 2nd Shift Complement 202 127 128 256 Overtime %...
-
The distribution of resistance for resistors of a certain type is known to be normal with 10% of all resistors having a resistance exceeding 10.256 ohms and 5 % having a resistance smaller than 9.671...
-
2. [3 pts] One of the best known oral antibiotics is pictured below. ante -OH a) Redraw the structure filling in all the implied lone pairs and hydrogen atoms. b) Label the hybridization at any 4...
-
During a parasailing ride, the boat is traveling at a constant 37 km/hr with a 200-m long tow line. At the Instant shown, the angle between the line and the water is 30 and is increasing at a...
-
Solve ???? ???? ???? 2 ( ???? 2 - 9 ) - ???? ???? ???? 2 ( 5 ) = 3 Do not include " ???? " in your answer. If there are multiple solutions, separate them with a comma. For example, if you found ????...
-
Let u= 2 -A 3 and w= 9 4 Write was a linear combination of u and v. w = Ou +
-
1. Mention any emerging technology that may assist in aircraft accident investigation 2. Describe an emerging technology in the air transportation industry that assists in aircraft accident...
-
Company B shipped a total of 14,742 orders in the month of October. A review of the line items indicates that 3, 286 of those orders did not contain the full items ordered by the customer when they...
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
Copy, the verbal portion of advertising, is used to move readers through a persuasive sequence called AIDA: attention, interest, desire, and action. To achieve this, some copywriters have adopted...
-
How does a direct access file processing system edit individual transactions? a. takes place in a separate computer run b. takes place on-line mode as transactions are entered c. takes place during a...
-
Which of the following is an example of an input control? a. making sure that output is distributed to the proper people b. monitoring the work of programmers c. collecting accurate statistics of...
Study smarter with the SolutionInn App