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led: Ch 11 Quiz Saved Revenues Variable expenses Help Son & Ert Summa $ 925, 808 Contribution margin $ 268, 080 482, 080 118, 080 5 251, 808 Fixed expenses: 443, 868 284, 680 158, 689 158, 809 Depreciation 282, 089 Liability insurance 69,680 8,489 43,980 41, 089 Program administrators' salaries 28, 768 28,280 7,280 16, 809 General administrative overhead" 116,108 40,589 38, 680 37, egg 185, 0Qa Total fixed expenses 53,680 81, 209 50, 229 414, 680 123, 280 168, 860 123, 420 Net operating income (loss) $ 28, 480 $ 26, 888 $ 34, 808 5 (32,428) 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 $28,400 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. ) 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? Complete this question by entering your answers in the tabs below. Next > 1 of 3 Prev Mc Graw Hill LL CanLocked: Ch 11 Quiz Saved Help Soul Eat Sbrin 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. Revenues Total Meals On Variable expenses Home Nursing $ 925, 080 wheels House-keeping Contribution margin 482, 080 $ 486, 808 118, 080 S 251, Be8 443,808 284, egg Fixed expenses: 158, 809 160, 868 202, 808 Depreciation 91,620 Liability insurance 69,608 8,408 41,080 43, 908 28, 70 Program administrators' salaries 7, 208 16, 809 116,108 48, 508 38, 608 General administrative overhead* 185, 080 53, 608 81, 209 Total fixed expenses 414,608 123, 208 168, 809 123,489 Net operating income (loss) $ 28, 408 $ 26 , 808 $ 34, 080 $ (32,480) 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 $28,400 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. 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Required: 1-b. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? Next > 1 of 3 Prev aw
