08:49 Revenues The XYZ Organization is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Frederick County and City of Winchester area. Three services are provided for seniors-home nursing. Meals On Wheels, and housekeeping. Data on revenue and expenses for the past year follow. - Bone Meals On Total Nursing Wheels keeping $924,000 $266,000 $400,000 $258,000 472,000 119,000 196,000 157,000 452,000 147,000 204,000 101,000 8,200 40,900 20,600 7,500 69,200 44,000 114,900 20,200 15,900 40,400 39,000 35,500 184,800 53,200 51,600 412,900 122,400 167,300 123,200 80,000 Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance. Progran administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) Note: 1. Liability insurance expenses are traceable expenses, $ 39,100 5 24,600 $ 36,700 $(22,200) 2. Program administrators' salaries expenses are traceable expenses. 3. General administrative overhead expenses are allocated common fixed expenses on the basis of program revenues. Management considers last year's net operating Income of $39,100 to be unsatisfactory, therefore, management 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 has no resale value and does not wear out. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. 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