chapter 11 question 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. Home Meals On House Total Nursing Wheels keeping 5 925,000 5 265,000 S 404,000 5 256,000 462,000 114,000 198,000 155,000 458,000 151,000 206,000 101,000 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability insurance Program administrators' salaries General administrative overhead Total fixed expenses Net operating income (loss) 70,300 9,000 40,800 20,500 43,500 20,200 7,600 15,700 115,200 40,600 38,180 36,580 185,000 53,000 80,800 51,280 414,000 122,800 367, 300 123,900 $44,000 $ 28,200 $ 38,700 $(22,900) "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 $14,000 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? 1.6. Should the Housekeeping program be discontinued? 2-a. Prepare a properly formatted segmented income statement 2b. Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the 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. Req 1A Reg 1B Reg 2A Reg 28 What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? REGIA Req 1B > 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 viab various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Should the Housekeeping program be discontinued? Yes No Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2A Reg 2B Prepare a properly formatted segmented Income statement. Total Home Nursing Meals On Wheels House- keeping Revenues Vanable 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) 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 - various services? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Reg 2B Would a segmented income statement format be more useful to management in assessing the long-run financial viability of the various services? Ores Ono (Reg 2A Reg 2