11 Homework Seved Help Save & E Problem 11-19 Dropping or Retaining a Segment (LO11-2] 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. Home Meals On House- Total Nursing Wheel keeping $ 900,000 $260.000 $400,000 $240,000 490,000 120.000 210,000 160,000 410,000 140,000 190,000 B0,000 Revenues Variable expenses Contebution margin Fixed expenses Depreciation Liability insurance Program administratora qalaries General administrative overhead. Total fixed expenses Not operating Income (loan) 68,000 8,000 40,000 20,000 42.000 20,000 7,000 15,000 115,000 40,000 38,000 37.000 100,000 52,000 80,000 40,000 405,000 120,000 165,000 120,000 $5,000 $20,000 $25,000 $(40.000) ces "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 $5,000 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 ability insurance and the salary of the program administrator would be avoided. Required: 1-o. 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 Reg 1A should the Housekeeping program be discontinued? 2-0. Prepare a properly formatted segmented income statement 2-5. Would a segmented Income statement format be more useful to management in assessing the long run financial viability of the various services? Complete this question by entering your answers in the tabs below. Dad 1 na Next >