1 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: 7.5 points References Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators' salaries General administrative overhead* Total fixed expenses Net operating income (loss) Home Nursing Meals On Wheels Total House- keeping $ 923,000 $264,000 $ 409,000 $250,000 112,000 191,000 158,000 461,000 462,000 152,000 218,000 92,000 69,300 43,700 114, 200 8,400 20,400 40,300 52,800 40,500 20,400 7,600 15,700 38,400 35,500 184,600 81,800 50,000 411,800 121,900 168,300 121,600 $ 50,200 $ 30,100 $ 49,700 $(29,600) *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 $50,200 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. 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?

Jackson County Senior Services is a nonptofi organization devoted to providing essential services to seniors who live in their own homes within the Jockson County area. Three services are provided for seniors-home nursing. Meals On Wheels, and housekeeping. Data on revenue and expenses for the post year follow Anscated on the bass of program revenues The head sdministrator of Jackson County Senion Services, Judith Moyoma, considers hast year's net operating income of $50.200 to be unsatbsfactory, therefore, she is considering the possibilify of discontinuing the housekeeping propram The depreciation in housckeeping is for a small van that as used to carry the housekecpers and thetir equipenent from job to job. If the program were discontinued, the van would be donated to a chantable arganzation. None of the general actministrative overhead would be avoided if the housekeeping program weis cropped, but the liability insurance ard the salary of the program administrator wrould be avoided Required: 1-a. What is the firancial advartage (desadvantape) of discontinuing the Housekeeping program? 1 -b Shovald the Housekeeping program bet discontinued? 2.a. Phepare a properly formatred segmented income statement 2.b. Would a segmented income statement format be more uselua to marapement in asssessing the fong-nin financial vability of the vathous services