A ezto.mheducation.com M Question 2 - Chapter 11 Homework - Connect C | Chegg.com C | Chegg.com Chapter 11 Homework i Saved Help Save & Exit 2 Problem 11-19 (Algo) 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: 1.8 points Meals On House- Total Home Nursing Wheels keeping Revenues $ 933 , 000 $ 265, 000 $ 408, 000 $ 260, 000 Variable expenses 483, 000 120, 000 203, 000 160, 000 Contribution margin 450, 000 145, 000 205, 000 100, 000 Print Fixed expenses : Depreciation 69, 000 8, 100 40, 500 20, 400 Liability insurance 43 , 200 20 , 400 7, 100 15, 700 Program administrators' salaries 113, 900 40, 200 38 , 100 35, 600 General administrative overhead* 186, 600 53, 000 81, 600 52, 000 Total fixed expenses 412, 700 121, 700 167, 300 123, 700 Net operating income (loss) $ 37, 300 $ 23,300 $ 37, 700 $ (23, 700) *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 $37,300 to be atisfactory; 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 financi