A-YA- E. 4 AL B- et 1 Normal 1 No Spac. Heading 1 Heading 2 Subtle Em Emphasisteme Paragraph Title Subtitle Styles 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: Home Meals on House Total Revenues Nursing wheels keeping $933,000 $ 268,000 S 408,000 $257,000 Variable expenses 478,000 117,000 208,000 153,000 Contribution margin 455,000 151,000 200,000 104,000 Fixed expenses Depreciation 69, 400 8,500 40, 700 20, 200 Liability insurance 44,300 20, 700 B,000 15.600 Program administrators' 114,300 40, 700 38,200 35, 400 salaries General administrative 186,600 53, 600 81,600 overhead 51,400 Total fixed expenses 414,600 123,500 165,500 122,600 Net operating income $40,400 $ 27,500 $ 31,500 $ 118,600) (los) *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 $40,400 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 housekennars anditbolaguiment from the Anal BIU - *** A".A. 1 Normal Font Title Style ABbce Aanb.com Aabba AaBbcd AaB Aanbced halbad rafice TNo Spec. Heading 1 Heading 2 Paragraph JORTOUT FUGIT, UT UUTIwy opony 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 financial viability of the various services? UNITED STATES