1 01:30:33 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. House-keeping 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 Home Nursing $ 921,000 $ 265,000 485,000 436,000 120,000 145,000 Meals On Wheels $ 402,000 208,000 194,000 $ 254,000 157,000 97,000 70,100 8,800 40,300 21,000 44,700 20,800 8,000 15,900 115,500 40,500 38,700 36,300 184,200 53,000 80,400 50,800 414,500 123,100 167,400 124,000 $ 21,500 $ 21,900 $ 26,600 $ (27,000) The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $21,500 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