11. ABC 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 Hone Meals On House- Nursing Wheels keeping $ 921,000 $263,000 $ 403,000 $255,000 464,000 113,000 200,000 151,000 457,000 150,000 203,000 104,000 69,000 8,100 40,600 20,300 43,700 20,100 8,000 15,600 115,400 40,600 38,900 35,900 184,200 52,600 80,600 $1,000 412,300 121,400 168,100 122,800 $ 44,700 $ 28,600 $ 34,900 5(18,800) The head administrator of ABC Services, considers last year's net operating income of $44,700 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? various services? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Yes ONO Complete this question by entering your answers in the tabs below. Req 1A Req 18- Req 2A Req 28 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? OYes ONO various services? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Req 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Req 18 > Complete this question by entering your answers in the tabs below. Req 1A Req 18. Req 2A Req 28 Prepare a properly formatted segmented income statement. Revenues Variable expenses Contribution margin Traceable fixed expenses Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) Total Home Nursing Meals On Wheels House-keeping < Req 1B Req 2B >