Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 seniors-home nursing. Meals on Wheels, 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 senior enrolled in the program. The housekeeping service provides weekly housedeaning and maintenance services Data on revenue and expenses for the past year follow Total $1,044,000 581,200 Nursing $301,600 142,400 Meals on Wheels 5464,000 250,000 House keeping $278.400 183.600 462,500 159.200 214,000 89,600 Revenues Variable expenses Contribution margin Fixed expenses Depreciation Liability Insurance Program administrators salaries General administrative overhead 24,050 47,920 125,400 200,000 9,250 22,400 44,00 60,320 42.400 3.600 40,400 92,800 22,400 16.920 55,680 Total fixed expenses 136,000 184,200 Operating Income (loss) 136,000 $(46,400) 6,600 $ 23,200 $ 29,800 "Allocated on the basis of program revenues The head administrator of Cumberland County Senior Services, Judith Ewa, is concerned about the organization's finances and considers the operating income of $6.600 last year to be razor thin (Last year's results were very similar to the results for revious The depreciation in the housekeeping category 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. Depreciation charges assume zero salvage value. 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: 1-0. Compute the change in net operating income for the company as a whole if housekeeping program be discontinued In not operating income by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: Larry Crumbley, Lester E. Heitger, G. Stevenson Smith

4th Edition

0808021435, 9780808021438

More Books

Students also viewed these Accounting questions