Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all the questions need to be answered Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
all the questions need to be answered
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 Dato on revenue and expenses for the past year follow: lace Meals on HOUBO otai Noring Wheels keeping $ 918,000 $264.000 $1402,000 S 252,000 4700000 223,000 12060000 151,000 448,000 151/000 196,000 101,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Diability insurance Program administratora salaries General administrative overhead Total fixed expenses Not operating income (losa) 70,500 8.900 40,900 20, 700 42,00 20300 12200 15.300 114 100 40000 36,300 35.600 183.600 52,800 80/400 50,400 411,600 122 800 266 000 1222,000 36.400 $28,200 29.200/21.000) os "Allocated on the basis of program revenues, The head administrator of Jackson County Senior Services, Judith Mlyamo, considers last year's net operating income of $36,400 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 lobility Insurance and the story of the program administrator would be avoided. Required 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-6. 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? VE UDUDIGWY, MICICIUIE, DHE I LUNDI en uie pasium VI UISLILI TUNTUI TOUSENCE pluyor. The depreciation in housekeeping is for a small van that is used to carry the housekeepers and their equipment from job to job. If th 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. 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. Reg 1A Reg 18 Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? RAGA Req 18> The head administrator of Jackson County Senior Services, Judith Miyama, considers last year's net operating income of $36,400 to e 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? 1-6. 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. Req1A Reg 10 Reg 2 Req 28 Should the Housekeeping program be discontinued? Yos No Req 1A Req 2A > various services Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Req 2B 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 foxed expenses Program segment margins General administrative overhead Net operating income (los) 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 program were discontinued, the van would be donated to a charitable organization. None of the general administrativ would be avoided If the housekeeping program were dropped, but the liability insurance and the salary of the prograr would be avoided. Required: 1-a. What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? 1-b. 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 vi various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 18 Reg 2A Reg 28 Would a segmented Income statement format be more useful to management in assessing the long-run financial viability of the various services? Yos ONO

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost management a strategic approach

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

5th edition

73526940, 978-0073526942

More Books

Students also viewed these Accounting questions