6 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 3:00 20,500 Home Meals on House- Total Nursing Wheels keeping Revenues 3 918,000 $263,000 $ 483,000 5 252,060 Variable expenses 458,000 110,000 195,000 153,000 Contribution margin 460,00 153,000 208,000 99,000 Fixed expenses Depreciation 59,700 8,500 40,300 Liability insurance 44,280 20, 500 7,900 15,800 Program administrators! Salaries 114,800 40,900 39,100 35,800 General administrative overhead 103,60 52,600 30,00 50,400 Total fixed expenses 412,300 122,500 166,900 122,900 het operating income (1) $ 47,700 $ 30,500 $ 41,100 ${23,900) "Allocated on the basis of program revenues The head administrator of ABC Services, conuders lost year's net operating income of 547700 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 it 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 programe 16. Based on the financial advantage (disadvantage of discontinuing the Housekeeping program calculated in requirement Rea IA should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2.b. Would o segmented income statement format be more useful to management in assessing the long run financial viability of the Various services