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Check Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live In their own homes within the Jackson

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Check 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 Revenues $ 932, 000 $ 267,000 $ 408, 000 $ 257, 000 variable expenses 455 , 000 115 , 000 190,00 150,000 Contribution margin 477 , 000 152 , 000 218,000 107, 000 Fixed expenses : Depreciation 70 , 400 8, 600 41,000 20, 800 Liability insurance 43, 600 20, 700 7, 100 15 , 800 Program administrators' salaries 115, 800 40, 500 39 , 000 36, 300 General administrative overhead* 186 , 400 53, 400 81, 600 51, 400 ices Total fixed expenses 416, 200 123, 200 168 , 700 124, 300 Net operating income (loss) $ 60, 800 $ 28, 800 $ 49, 300 $ (17, 300) *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 $60,800 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 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? Complete this question by entering your answers in the tabs below. Req 1A

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