Check my work 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 Total Nursing $919,000 $ 267,eee $ 470,000 115,000 449,000 152,000 Meals On House- Wheels keeping 4e2,eee $ 250, eee 201,000 154,000 201,000 96,000 Revenues Variable expenses Contribution margin Fixed expenses: Depreciation Liability insurance Program administrators salaries General administrative overhead Total fixed expenses Net operating income (loss) 69,300 44,000 114,000 8,200 20,500 40,500 7,600 38,100 20,600 15,980 35,200 40,700 183,800 411, 100 $ 37,900 $ 53,480 122,800 29,200 $ 80,400 50,000 166,600 121,700 34,400 $(25,700) "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 $37,900 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. 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 Prev 1 of 4 ! Next > o search BE e ENG 2:17 PM 5/31/20 13 son County Senior Services, Judith Miyama, considers last year's net operating income of $37.900 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. 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 Req 2B What is the financial advantage (disadvantage) of discontinuing the Housekeeping program? en 12 Req 10 > S Prev 1 of 4 Next > Te to search o BE E ENG 5312 96 & 7 8
