$*$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 $$24,100$ 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.

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 $1$A$,$

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?