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 6 Robe points 20210 Revenues Variable expenses Contribution margin Total Burning 921,000 $264,000 Meals On Wheels 405,000 keeping 252,000 477,000 116,000 203,000 150,000 444,000 140,000 202,000 14,000 Fixed expenses Depreciation 70,100 8,900 40,300 20,900 Liability insurance 44,100 20,500 7,000 15,000 Program administrators salaries 114,400 40,000 38,600 35,000 General administrative overhead 104,200 Total fixed expenses 412,000 52,000 133,000 1,000 50,400 167,700 122,100 Bet operating income (loss) 31,200 $25,000 $ 34,300 (20,100) P 1+ References "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 $31,200 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. 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?