ackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own mes within the Jackson County area. Three services are provided for seniors-home nursing, Meals On Wheels, and housekeeping ata on revenue and expenses for the past year follow: Home Meals On House- Total Nursing Wheels keeping $ 914, eee $ 261,000 $ 4e2,eee $ 251, eee 473,000 112,080 209,000 152,800 41 , 149,000 193, eee 99,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Progran administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,800 8,400 40,480 21, eee 43,200 20,100 7,400 15,700 114,780 40,8ee 38,100 35,800 182,800 52,2ee 80, 4ee 50,200 410, 500 121,500 166,300 122,700 $ 30,500 $ 27,500 $ 26,700 $(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 $30,500 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-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Reg 1A. should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2-6. 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. Req 1A Reg 1B Req 2A Reg 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? Req 1A Reg 1B Reg 2A Reg 2B Based on the financial advantage (disadvantage) of discontinuing the Housekeeping program calculated in requirement Req 1A, should the Housekeeping program be discontinued? OYes ONO Prepare a properly formatted segmented income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Variable expenses Contribution margin Traceable fixed expenses: Depreciation Liability insurance Program administrators' salaries Total traceable fixed expenses Program segment margins General administrative overhead Net operating income (loss) + Reg 1A Reg 1B Req 2A Reg 25 Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Yes ONO
