Cumberland County Senior Services is a non-profit organization devoted to providing essential services to seniors who live in their own homes within the Cumberland County area. Three services are provided for senlors - home nursing. Meals on Wheeis, and housekeeping. In the home nursing program, nurses visit seniors on a regular basis to check on their general health and to perform tests ordered by their physicians. The Meals on Wheels program delivers a hot meal once a day to each senlor enrolled in the program. The housekeeping service provides weekly housecleaning and maintenance services. Data on revenue and expenses for the past year follow: "Allocated on the basis of program revenues. The head administrator of Cumberland County Senior Services, Juatith Ewa, is concerned about the organization's finances and considers the operating income of $5,600 last year to be razor-thin (Last year's results were very similar to the results for previous years and are representative of what would be expected in the futuref She feels that the otganization should be buciting its financlal reserves at a more rapid rate in order to prepare for the next linestable reseston Affersecing the above repart, Fwa osked for more information about the fintancial advisability of discontinuing the hovsekeeping ptogram The deprechation in the housekeeping categoty is for a strall van that is used to cary the housekecpers and thelr equiponent from job to job. If the program were discontinued, the van would be donated to a charitable organizition Depiectation chiages assarve zero The deprecition in the housekeeping category is for a smatl van that is tred to carry the housekeepers and theer equipment trom job to job. If the progitam were discontinued, the van would be donated to a charitable organization. Depteciation charges assume zeib salvage value. None of the general administrative overtiead would be woided if the housekeeping program wore dionged. bat the liability insurance and the salary of the program dminstrator wotald be avoided. Required: 1.a. Compute the change in net operating income for the company as a whole if housekeeping program be discontinised. 1-b. Should the housekeeping program be discontinued? Yes No 2. Would a segmented income staternent format be more useful to management in assessing the long run financial viability of the various services