03:20 40 Skipped eBook 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) Total Home Nursing $ 926,000 $264,000 Meals On wheels $ 408,000 House- keeping $254,000 475,000 114,000 202,000 159,000 451,000 150,000 206,000 95,000 70,000 8,900 40,900 20,200 44,600 20,900 8,000 15,700 114,100 40,000 38,300 35,000 185,200 52,800 81,600 50,800 413,900 123,400 168,800 121,700 $ 37,100 $ 26,600 $ 37,200 $ (26,700) Print References 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 $37,100 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?